I saw someone on a panel mention the change in Indian markets came about due to a government decision in 2015-16, to allow public funds to have greater participation in the equity markets.
This was akin to the 401(k) passed in the US long back 70-80’s to allow public funds to directly participate in equity markets.
I don’t recall if the amount of participation was increased, or whether participation was just started to be allowed.
But this was one of the primary reasons identified for the gradual increase in resilience of the DIIs in Indian markets.
In simple terms, every month more and more of public money enters the markets (EPF, PPF, etc)
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Yes. SBI’s Nifty 50 ETF 1,54,851 crores of AUM.
PPF is a sovereign product and a compounding debt product, EEE product, which has a place in the overall PF, and as it is debt, it should not be mixed with equity. Also, PPF has been for decades, I think it started in mid 1960s.
My point is that, some people are coming into equity with no idea, they think that equity works like FDs, and some think that money is made easily in the market, so all they need is to just invest. There is a lot of misunderstanding and misinformation. The emphasis and focus is on the returns and the risks are mentioned as a standard message.
So I don’t if and when the retail inflows will slow down, or if this is a genuine case of financialization of assets that is in the making, as more and more get aware and educated regarding the market and enter.
Didn’t even think so much.
If we consider 6 years to double, in 2029 we will be at 36000. In 2035 we get 72000 and 2041 we get 144000.
Hard to believe we will get there when you see in absolute terms.
So lumpsum may not be the best way to invest in ETF? Now i am doubting my index investments!