Sep 7, 2011

Indian Mutual Funds monthly buy highest in August-2011 after 38 months since June 2008

In a very positive note and condolence when Indian stock markets has grossly underperformed and in fact remained the 2nd worst performing stock market after Bangladesh in Asia; the mutual fund industry has given glimpse of a silver lining.
 According to data released by Sebi, the monthly net investment by Indian mutual funds for august month was at Rs.2524. Such type of huge monthly buying was way back in June 2008, almost 38 months back.
It is a well known fact that FIIs have been selling Indian stock markets since Christmas 2010 (as per our observation and updates). We have been advocating that decoupling is the only remedy for emerging economies, however it is not easy and we acknowledge not to do generalization and oversimplification for all that is to de-coupling. This type of reverse trend amongst domestic mutual funds is very encouraging. However as per another set of data, the numbers of mutual fund investors has seen a decline as well as the participation of retail investors. Read separate article below,
However, the lay investors will ask, if the Indian mutual funds have bought such a hugely, then why Indian markets faced the year’s worst month that August was (after January of course) ?
Keep visiting us for more on decoupling and so on.


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