Forbidding March 2016, net inflows into equity mutual funds have been active for all months since March 2014. Since May 2014, net inflows have been around Rs 2 lakh crore, which is by far the highest net inflow for any period of rolling 33 months in the history of mutual funds.
Foreign institutional investors (FIIs) may soon fail much of their thump in the domestic Stock market due to vigorous inflow of domestic savings to equities through the mutual fund lane with Equity funds have perceived an astonishing amount of inflows over the past three years, both in terms of regularity and volume.
With rising household savings, equity mutual funds have indicated forceful inflows over the past three years. In addition to this, greater participation of youth in the equity market, dwindling magnetism of physical assets and prospects of real interest rates nourishing in the positive zone will further support flows into equity mutual funds in the coming years.
With strong inflows expected to continue in the mutual fund industry, domestic funds are likely to advance from being a market alleviator to an influencer,” Deutsche Bank augmented.
During the October-December quarter 2016, when foreign institutional investors were selling cripplingly on Dalal Street, inflows from mutual funds crowned downside. For the quarter ended December 2016, foreign institutional investors sold shares worth Rs 30,726 crore, while domestic institutional investors bought shares worth Rs 32,082 crore.
This trend is set to intensify in an cheerful scenario, and the average annual household flows into equities through the mutual fund route could double the average flows of past three years during FY18-20, said the report.
As per industry experts, monthly inflows through SIPs have the prospective to average around Rs 6,800 crore over the next few years. Now the market awaits to see the further moves of market participants in handling inflows and outflows.
GDP Estimates released by CSO projecting the growth to be lower for Q3:
The first estimates released in January projected that India would grow 7.1 percent in 2016-17 from 7.9 percent in the previous year. These were based on incomplete corporate income and factory output data and did not fully factor in the effects of demonetisation.
In the midst of cyphers of slide in consumer goods sales and muted investment activity because of the cash crux, it is highly likely that the CSO will abruptly swot downhill India’s GDP growth in its second advance estimates.
The important facts to be noted in estimates are:
- Whether Q3 Four-year low GDP growth?
- What if Q3 growth is below 6%?
- Is there are possibilities of shrewd comeback in Q4?
- Does it has lower nominal growth in 2016-2017?
