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Thursday, April 18, 2024
Thursday, April 11, 2024
Will You cut down on Midcap & Small Allocation in FY-25....An eye opener Insight
There has been a lot of noise in the market related to Midcap and Small cap and stress test results and in many places even the regulators are scared for the one-way rally of the segment. But did we try to find out where the inflows of the largest Industry of Equity Investments - Mutual Funds portray the final picture? What is the impact of the Stress test how do you find the inflows to carry forward and where do you find the retail India to invest from the 5% Equity allocation to 6% or 7% level?
Did you check where you have to rebalance and reinvest in the Financial year 2024-25? Will you follow the herd of the market or will you search for unique opportunities for wealth creation?
Many investment advisors have given advice to invest in large caps and pull away from Mid and small caps. Few houses came up with the view of investing in Flexi cap rather than doing investments in Multicap and large caps. Then SEBI came up with some stress test numbers unreadable by investors and many financial advisors out of fear asked their clients to redeem their portfolio and shift into large caps and flexi caps.
The recent data of the AMFI speaks that Small Cap witnessed profit
booking whereas Midcap attracted inflows. The large-cap inflows were guided by
two factors 1) One the large-cap underperformance became an opportunity for
rebalancing from small-cap and midcap and 2)The large-cap rally will benefit from the Q4 results of FY-2023-24.
Now in between the Midcap and small cap space corrected by hopping and
lot of quality midcaps also corrected. Even though the indices have been
corrected by single digits, there are stocks in the market that have corrected
by more than 50% to 70%. Segments like cybersecurity, artificial intelligence
and emerging technologies hold growth potential for the information technology
sector. Hence one will find quality Midcap IT companies to grow and create
significant wealth in the coming years. If we look at the sector composition in
midcap and small-cap space, we will find the manufacturing sector has more
dominance. Now if the upcoming Indian GDP is focused towards manufacturing
growth making India less dependent on imports and more one exports, we are
bound to witness a major rally in midcap and small-cap space.
The biggest advice post-correction is that
now you do the reinvestments back into those midcap and small stocks and Mutual
Funds where you exited just a month before or a couple of weeks before.
Re-investment is one of the biggest hurdles in today’s market. In March over 50
stocks with a market capitalization above Rs 500 crore plunged by 25% to 65%.
Additionally, around 130 stocks have dropped by 20% to 25%.
If we look at the AMFI data we will find Large Cap inflows for FY-24 was
Rs.79694 cr compared to Midcap -Rs 113889 cr against Small Cap Rs 110317 cr.
The numbers speak loudly that the Mid and Small-cap inflow in FY-24 was much
higher and is still invested in the market and hence the valuation of the
stocks will never come down historically it has come down or even expected to
be down even in the worst nightmare. The strength of the Indian equity market
is completely in the hands of the retail investors.
The above data analysis does not include PMS or AIF. Flexi Cap,
Multicap or Aggressive Hybrid etc allocation. Hence putting all those numbers
in one place in a cumulative will push up the allocation in Mid and small cap
to and new high. I hope now it’s well clear why SEBI’s stress test and other
market rumours of correction will not play any role in getting reduced
allocation. It is now a game of compounding for the Midcap and Small to have
newer highs and more opportunity identification for investments.
Even the Mutual Fund Industry stress test result failed to find any
stress within Mid and small-cap categories. The beautiful thing is that all
these activities led to a surprise correction in quality stocks and created new
opportunities for the inflow of funds into this space.
The retail investors of India are more risk-taking and they have more
knowledge of portfolio and asset allocation models and they understand the
midcap and small return story as compared to what an investor used to
understand 20 years before. The strength of the retail investor is
proved when we find that retail investors have also pumped billions of rupees
into mid- and small-cap schemes. In the calendar year 2023, small-cap and
mid-cap schemes accounted for 40 per cent of the total net inflows into active
equity schemes, receiving ₹64,000 crore of total inflows of ₹1.6
trillion.
Retail investors have always been on the lookout for a stock that would
deliver multi-bagger returns within a year. The possibility of a large-cap
stock generating a multi-bagger return is quite low due to their already
established market positions with high market valuations.
If post-election we will find significant inflows coming in midcap and
small-cap space and direct equity options are being explored aggressively.
Between April last year and March this year, the average daily turnover in the
cash space has jumped over 98 per cent, which showcases the strong demand for
equity among investors. Further, the average daily turnover of BSE equity
derivatives contracts rises a whopping 2,400% to ₹34.6 trillion in FY24
from a mere ₹1.38 trillion in the preceding fiscal year. NSE’s turnover
jumped 111% to ₹324.9 trillion in FY24 from ₹153.5 trillion in FY23.
This reflects the maturity of the investors in the market.
Furthermore with Nifty lot size being reduced to 25 will lead to more
aggressive inflows from the retail clients. Indian benchmark Nifty
delivered robust returns, rising around 25 per cent in FY24 despite having
higher global interest rates and geopolitical tensions across the
globe. Now when the tide is going to turn on the other side
what numbers will come up on the table is very clear and so as the retail
investors who will join the market post-election results of June 2024. In fact,
we will find a surge in account openings once the exit poll numbers start
rolling out. One will find significant rallies in quality midcap and small-cap
post the correction and the major drive will be pre and post-election rallies,
which one might call a biased rally. Further, once the ROI starts coming down
the earnings will start picking up which will give a significant boost to the
midcap and small-cap space.
The midcap and small-cap companies are not leveraged as they have been historically. They are in a much better position compared to what it used to be 20 years before.
Saturday, March 16, 2024
Stress Test Results of MF- Should I stay Invested in Midcap & Small Cap?
Life itself has so much stress that in a recent study it has been found that approximately 5 million deaths worldwide are attributed to mood and anxiety disorders each year. Further more than 700 000 people die due to suicide every year. For every suicide, many more people attempt suicide. Now I am more under stress due to the market actions.
Now over and above all so much stress we have a Stress Test by SEBI for Mutual Fund Industry to find out did any AMC
did investment in Illiquid stocks. As an
investor, I have one simple question the results are out of what my
interpretation should be doing investing. Should I redeem my assets from Midcap
and Small which I believe will play a big role when the Indian GDP grows beyond the 5
trillion mark? When the Indian GDP is rising and the growth is visible very Clearly
over the next 5 to 10 years then the capping of 100 large caps and 150 stocks
in the Midcaps space needs a significant revamp which goes without saying. It can't
be like that that out of the BSE stock exchange's
5,311 listed companies, 5061 companies
are small cap.
Now if the Industry is going to become a 1Rs.00 lakh cr industry in the coming 5 or 8 years where the allocation will be and how many stress tests will be required when the bucket is small. It seems the regulator needs to move ahead the curve from the traditional practices. In 2018 this classification was introduced then Indian was struggling with high NPA and NCLT& RERA was just being introduced and over the past 6 years, there have been complete changes in Indian corporates.
When the Regulator raised the question about
the AMCs investigating that did they investments in illiquid stocks in Midcap and small cap Space
then I must accentuate that every AMC have to file their investment reports and
audit checks and balances are very much in place by the regulator why to
create a panic for the common people who lost whopping over Rs 9 trillion
in investor wealth has been lost due to this market correction, accounting for
more than 50% of the total value destruction. A country where out of 140
cr people only 5% have Equity Investments and the same country does not have
any social coverage or retirement benefits but rather just being self-reliant on
its own financial planning. Further this 5% number came up in the last 3 years
before that it was 2.2% only.
Now if the Indian population of investors in equities
increases to 10% 50% of the sharing comes through Mutual Funds and 50% of
the same flows in MF comes in midcap and small cap then what will be the condition
of the fund managers of the AMC where they will invest that corpus when only
150 companies are midcap and rest is all small cap. They
will have no other alternative but to invest in a small cap as per SEBI
classification.
Coming back to the main question what an
investor should make out of this report enclosed above. It is just like a machine
but without a manual. The biggest disadvantage of this type of half-hearted work
is that financial planning which includes the most goals of life (child
education, retirement planning, buying a house) goes upside down. In a country where the number of financial advisors and MFDs is very low compared to the population number. Miss-selling and misguiding will begin due to stress test reports which will be interpreted in many ways without any benchmark of understanding. I am a simple investor I don't understand liability assets in AMC language and hence how will I evaluate this report.? If this stress test was for investors like us then what is the end result?
Now many financial advisors will take advantage
of the report and will misguide. Particularly
the banks since in a country of 140 billion even half the population does not
Bhagwat Gita. They are dependent on TV serials to gain knowledge of Bhagwat
Gita.
Now post this report has come out it seems who
will liquidate first the AMC or the client from the scheme since it's a half-hearted
activity. It is just replicating the US banking stress test which also failed to enlighten
people where they should park their money even if the government can’t back it.
In a recent presentation, the SEBI chief was recommending
to invest in REITS and INVITS well how many people understand the same and how
many sessions have been done to educate investors to invest in REITS and
INVITS. My biggest question as an investor is will REITS & INVITS will help me to plan my financial goals and objectives. Will I be able to have an early retirement?
Now which mutual fund should I sell and which I
should keep and increase my allocation post the stress test results. Is my
advisor correct to analyse the result and guide me since there is no
manual?
Thursday, February 29, 2024
Small Cap and Midcap Re-classification yard Stick needs to be Changed...
A huge number of new analysts and mostly many
IFAs have suddenly due to the blessing of YouTube and some blind followers become Midcap and small-cap analysts.
SEBI's cautious approach is bound to go ahead as we have seen previously burning
fingers. We remember that in 2018 we witnessed a similar cautious approach
where many MF schemes stopped taking inflows. Well of them kept inflows coming
and they burnt their fingers.
We might all
have forgotten that last time some brokering company came up with Midcap and
Small cap valuation reports and they said it's time to exit but we all know what
returns we achieved. The problem of today is the classification limitations and the same is not restricted to MF but across all equity products.
The problem
with the whole understanding of the Midcap and Small cap segment is that we are
getting carried away too much on the Index performance whereas underlying stock
valuations are low or rather cheap. What we are missing out on is that India’s
market cap is currently the 5th largest globally (US $4.5trn) but India’s
weight in global indices is still low at 1.6% (10th rank). This number will
improve as India breaches the 5 trillion GDP economy.
- We saw strong YoY earnings growth in the 3rd quarter results in auto, lending financials (ex-SBI), industrials, energy, cement, pharma, capital markets, and metal sectors. Now these sectors are the economic sectors where India is focusing to be manufacturing a manufacturing-independent country.
- The PLI is also attached to the same segment driving growth. Now the midcap and small cap are the ones who are going to benefit from the same. Or do you want only pharma, IT and FMCG to perform for your client portfolio and let India struggle with GDP growth of 5 trillion?
- If the Nifty is going to be at 25000 levels in
FY-25 then where do you find Midcap and Small caps to reach and who will
support this rally of the Indian stock market. Why SEBI should rework on
classifications and if they don’t do this will have a problem for investing in the coming days as India reaches and crosses
the 5 trillion GDP mark.
- At the aggregate level, the capacity utilisation (CU) in the manufacturing sector increased to 74.0 per cent in Q2:2023-24 from 73.6 per cent in the previous quarter.
- The IIP-Manufacturing (Quarterly Average) is also on the rise followed by De-trended Quarterly IIP-Manufacturing space converting from negative to positive.
- If you look at the order book numbers in detail you will get clarity that we have a lot to work on and a lot of earnings to be taken into books in real terms rather than based on expectations.
- Overall Gross Fixed Capital Formation has risen to 34% of the GDP in FY23, levels last seen in 2013. Capital Expenditure (capex) substantially augments the economy's productive capacity and exerts a more profound influence on long-term growth and productivity in contrast to revenue expenditure.
- As more capacity utilization and economic growth drivers play their dice the MSME segment will benefit the most which will impact the price of the Midcap and small-cap stocks.
- Now deep diving into the capex of Indian corporates we find that non-financial companies witnessed a strong capex growth of 36.5% YoY during FY23, much higher than the 22.6% YoY growth recorded in FY22.
- Further, it has been found that the aggregate capex undertaken by Indian non-financial firms in 2023 surpassed pre-pandemic levels for the first time, with 3.3% above the pre-pandemic baseline of 2019
- The government has spent Rs 5.46 lakh crore, around 54.7% of the budgeted capex target of Rs 10 lakh crore for FY24, as of October-end, according to data from the Controller General of Accounts.
- Now with the interest rate outlook getting lower in FY25 and with Mr. Modi coming back again in his 3rd term, is bound to increase confidence among the market investors and MSMEs.
- Looking at the derivative numbers we find that participation in the derivatives market is on the rise in India with the derivatives-to-cash ratio at 400x as of July 2023, the highest in the world. Thanks to YouTubers, full-time stock traders and 15cr new demat account holders which is still galloping like a horse.
- The number of demat accounts opened with the two depositories – the Central Depository Services (CDSL) and the National Securities Depository (NSDL) -- rose 28.7 per cent in the past 12 months, from 108.1 million to 139.2 million. About 4.1 million demat accounts were added in December 2023, making it the highest-ever monthly addition.
- This new breed of investors has been investing for a long time, and they don’t come with any legacy of Harshad Mehta, Ketan Parekh etc. This new-age client wants clean government and progressive economic policies for the growth of their career and life.
- As salaries will grow investing appetite will grow more and with smartphones in the world and free information on the other hand the investing and risk-taking ability has changed.
The biggest proof of the
pudding is that despite Ukraine Russia war and historical new highs of US
Federal rate hikes the market scaled to new highs in many countries. The historical predictions have already been
challenged hence one needs to understand the world's behavioural aspect of investments.
Now many
people have suddenly jumped into large-cap investment options and simply diluted
the goal-based, risk profile-based financial planning and the Investment
document decided mutually with the client while doing asset allocation investment
in mid and small-cap.
People have
become crazy in accentuating too much on the segment where they have forgotten
that MF is just not alone in doing investments in the segment. We have underlying
index funds, Insurance, Direct Equities, PMS and AIF products doing investments
in the same ocean. This is the place where
the voice gets strengthened and SEBI needs to ACT fast for another
reclassification to help the investors and investments.
Monday, February 12, 2024
Dumping of China into India is Good for Indian Equities.
Those who are thinking that as Chinese markets are running at a deep discount, and this will lead to a reversal of FPIs from India to China well it might be daydreaming with open eyes. Why will FPI money come to India in PE, AIF CAT 1 and II, and ETFs? Why are cheap China market investments flowing into India?
China DUMP @ Wealth Firms Crisis
& Investment Crisis
There have been several instances
where the FPI investors of China are scared and running away from the Chinese
market.
· The China and Hong Kong market shed around $1.5
trillion in January only. Over the past three years, about $6 trillion —
equivalent to roughly twice Britain’s annual economic output has been
wiped off the value of Chinese and Hong Kong stocks. In these 3 years when
the Chinese markets were running on deep discounts Indian market attracted
FPIs.
· PE investments have
declined significantly in China due to the economic and sectoral turmoil. Now
this has led to a significant drop in financial product opportunities.
· It's not the dip which is the opportunity but the lack
of opportunity for growth within China.
· Wealth firm closures
are all due to the lack of an ageing population, and the growth of a savings
mindset. 30% of residential property purchased in China is parked in real
estate which is in the form of investments rather than living.
· Further around 80% of
the savings of China is parked in real estate investments compared to 30% of
the U.S
· 32.4% is the rate of household savings which comes to
3.2% of the GDP. Further, the current carnage of the real estate investment
products leads to more savings and hence wealth products are drying down faster
followed by wealth firms shutting down offices.
· Export has come down and so has the earnings of the
Chinese corporates.
· Chinese consumption accounts for 53% of GDP compared
to 73% of the global standard.
· Hence deep discount opportunities in any market do not
lead to an inflow of funds. The Chinese market carnage is so strong that its
securities regulator was sacked and moved from his position.
· U.S. emerging market funds’ allocation to China as a
share of total EM exposure declined to 20.6% from 28.6% on an asset-weighted
basis, and to 20% from 26% on an equal-weighted basis. They want stability
in the economy and an economy to grow based on demographic statistics of the
young population. China has a bulging ageing population.
· The market value of China and Hongkong equities is
down by nearly $7 trillion since its peak in 2021 whereas Indian markets rose
by 60% and American stocks rose by 14%. Out of its 40 years of export, the
Chinese economy faced only 6 times when its trade was negative.
· A 7% or 8% GDP has now come down to 4% which makes it
difficult for its economy to grow.
· The real estate bubble burst is the new member in
the carnage context but what we find is that the Chinese economy struggled from
2017 -18 onwards once Mr. Donald Trump squeezed the neck of Chinese bureaucrats
and its economic policy framework.
· In China safer money market instruments are attracting
the flows instead of equities. Wealth Firms have become bankrupt and legally
bound with lost faith due to the real estate wealth products disaster.
· The fall of the China and Hong Kong markets has led to
a significant loss of faith among Chinese investors and further foreign wealth
firms are moving out from China.
· The biggest losers are the blue-coloured job people
whose savings went tossed due to the real estate sector collapse.
· Investment wealth firms like Zhongzhi International a
wealth firm owes to 150000 clients around $2.9tn which will never come
back. Chinese demography does not support companies for opportunities in PE and
similar opportunities.
· The outflow is very strong from China and the same is
proven when it is found that emerging market ex-China debt funds, have
attracted inflows for the past seven months and in January drew in $47.3
billion, the most since October 2022 and one of the highest on record.
India Inflow -FPIs
· The biggest reversal of inflows happening from China
to India is through the ETF route. BlackRock is set to fully replicate the
underlying index of its $2bn China A-Shares ETF.
· It has been found that according to data from LSEG
Lipper, China-focused funds domiciled outside of that country saw outflows of
$1.54 billion in 2023 alone, and an 18.8% drop in assets under management.
· Meanwhile, the expanding roster of ex-China funds
pulled in $6.13 billion in 2023, with assets jumping 168% to $12.27
billion. It has been found that ETF funds excluding China have soared
significantly in 2002 and 2023.
· The MSCI Emerging Markets index returned 9.8% in 2023
versus 20% for the MSCI Emerging Market ex-China index, as the world’s
second-largest economy struggled.
· This is getting reflected in all ETFs and most
importantly change of Benchmarks of pension and insurance funds of developed
and emerging markets.
· Zurich-based Vontobel Holding AG is looking ahead
towards India to invest and set up an office.
· India-focused ETFs saw net inflows of $8.6 billion
last year compared to the $7.4 billion peak in net flows in 2021.
· Last year, investors
redeemed €2.9 billion (£2.5 billion) from actively managed China equity
open-end funds domiciled in Europe, marking an annual organic growth rate of
-6.6%.
It's
not cheap but the long-term Cheap of China.
Conclusion:
India
will attract more inflows in coming years as various benchmarks and ETF inflows
Ex China are now getting diverted to India. Indian economic structure is the
prime thing which guides the NIFTY and the growth of India.
· In Dec. 2019, household financial assets were 86.2 %
of GDP; liabilities were 33.4 % of GDP. In March 2023, these numbers were 103.1
% and 37.6 %, respectively.
· Hence Net Financial Assets of households
were 52.8 % of GDP in Dec. 2019, and by March 2023, it had improved to 65.5 %
of GDP.
· The number of GST taxpayers increased from 66 lakhs at
its introduction in 2017 to 1.4 crore in 2022, with a larger number
of smaller businesses entering the regime.
· . The number of recognised start-ups has increased
from 452 in 2016 to more than 98,000 in 2023.
· Internet penetration in India, as per the ‘Internet in
India’ report 2022, crossed the 50 per cent mark in 2022, growing more than
three-fold since 2014. This leads to a significant change in preference for
goods and services followed by extensive maturity of investors.
· Effectively, the capital expenditure of the Public
sector (including Union government capex, grants to the states for capital
asset creation, and investment resources of the Central PSEs) has increased
from ₹5.6 lakh crore in FY15 to ₹18.6 lakh crore in FY24
· The PLI Scheme, involving an outlay of ₹1.97 lakh
crore, 746 applications were approved till the end of December 2023, with 176
MSMEs being direct beneficiaries. The scheme witnessed over ₹1.07 lakh crore of
investment, leading to production/sales of ₹8.7 lakh crore and employment
generation of over 7 lakh. The scheme has witnessed exports exceeding ₹3.4 lakh
crore.
· The Insolvency and Bankruptcy Board of India (IBBI)
shows that the IBC has rescued 808 corporate debtors through resolution plans,
with realisations of 168.5% against the liquidation value and 32%
against the admitted claims of the creditors.
· . Companies are now raising funds from issuances of
bonds instead of relying mainly on bank loans. Corporate bond issues in FY23
were 2.9 times those in FY 2014, while outstanding corporate bonds grew a CAGR
of 12.8 per cent between FY 2014 and FY23. A report by CRISIL states that the
corporate bond market is set to more than double from ₹43 lakh crore in FY24 to
₹100-120 lakh crore in FY30. Hence less burden due to the rising interest rate
scenario.
Hence it’s the economic policy framework which protects its own citizens and also FPIs which is the actual reason why India will attract more inflows in coming years compared to the Chinese deep discount market.
Sunday, February 11, 2024
Who is adding India in Every Global Investors Portfolio & Products ?
I am not able to believe that my country India is the fastest growing economy among G20, G7 and even among the global market. I firmly believe that the Indian market- NIFTY 22000 is a bubble and is about to burst at a point in time. I am searching for rationales for the correction of NIFTY to the level of 15000. I am in searching expecting the scam to burst before the 18th Loksabha Election and the Indian economy to get fort tailspin. I am searching for the banking crisis, a high level of NPA and falling confidence in the global market.
These are
the wishes of the PUT option holders, the bear favouring market players and most
importantly those who have lived life in a market filled with all sorts of slow
and corruption. But before delving
further I would accentuate the global crisis which is brewing like a filter
coffee taking a long time to get launched in the market.
If we
want to know where India, U.S. and China stand we need to know the respective
key aspect of fund inflow and outflow which decides the Nifty fate of 30000 or
40000. I am not repeating the same demographic change and opportunities for the Indian capital market. I am discussing the slowdown opportunities of the US and China where India is placed and its investments.
The US Slow Poison Fall
The
S&P 500 is already up 5.4% on the year, well above the 1.9% average gain
Wall Street strategists were predicting for all of 2024. 2024 has been
the best start of the year for momentum factor since 2008, IShares MSCI World Momentum has gained 14% ytd vs 6% for iShares Core MSCI
World. Momentum factor has also outperformed on Wall St. iShares MSCI USA
Momentum has gained 14% vs iShares Core S&P 500's 5.5%.
On the other hand, the wall Street have narrowed down. Those who are thinking soft landing for the U.S economy as the stock market index is at a time high well it is a gimmick to be believed in. More than 70% of the S&P 500 stocks have underperformed in 2023. It is not a soft landing but a crash landing in the form of slow poisoning.
Magnificient Bubble.
Those who are in search of the bubble in the Indian market and investing with huge trust in the International market well the bubble dream is true but the country's name is changed.
The FANG name now has changed into magnificent 7. Magnificent 7 market cap nears $13 trillion. These seven tech giants of the other big name Magnificent 7 alone represent 30% of the S&P 500. Currently, the Magnificent Seven's market value is almost half as large as the remaining 493 S&P 500 companies combined.
If we take a quick look towards the returns made by these 7 we find
Magnificent
7 Total Returns, 2022-24...
- ·
Nvidia $NVDA:
+125%
- ·
Meta $META:
+41%
- ·
Microsoft
$MSFT: +25%
- ·
S&P 500
$SPY: +7%
- ·
Apple $AAPL:
+6%
- ·
Amazon $AMZN:
+3%
- ·
Google $GOOGL:
-2%
- ·
Tesla $TSLA:
-47%
The remaining
70% of the S&P 500 companies are underperformed.
The National Federation of Independent Business (NFIB) small business hiring plans index declined from 16% in December to 14% in January. The fall of the economy and market began for the U.S. but under a sugar-coated number of S&P 500 and employment data.
The CHINA Outflow
India In Every Global Investor Portfolio & Products
Global giants like Goldman Sachs &
Morgan Stanley are leading the charge, signalling a strong endorsement of India's
economy, and asking their investors to add India to their portfolios. This pivot reflects a strategic reassessment
of growth potential in emerging markets. If we look at the global ETF market,
we find that the evaluation of investment strategies towards India has become more aggressive.
US ETFs focused on India experiencing
record inflows, while funds dedicated to China see outflows. This speaks loudly that investors have started
accepting Indian growth in their portfolios.
ETF flows are changing the direction. As China AMC suspends purchases of Nasdaq 100 ETF and S&P 500 ETF the doors for Indian markets open up. Very soon Indian investors will be able to invest in these funds ( regulatory changes will take place) and simultaneously flows from these countries will come to Indian markets. Long-term investments are getting out of China which is a major economic event. Between September 2023 & January 2024, a net outflow of more than $140 billion of long-term investment had left. Emerging markets excluding China are getting huge inflows through ETFs. emerging market securities attracted $35.7 bn in January -- the third consecutive month of overall inflows to EM, explained mainly by strong debt issuance.
Japanese investors are also diversifying aggressively towards India. Thanks to the strategic tie-ups of India with Russia and Japan followed by other countries who are now adding India to their investment portfolio.
So Indian markets are well placed to
get huge inflows in 2024 and onwards. Those who were thinking that the Indian
market would fall Indian investors would cry and there would be a recession in
India and expecting NIFTY to be around 15000 levels well very sorry to disappoint
the PUT option holders.
Pull Up Socks - Indian Financial Advisors
U.S. boutique bank Lazard or
European peer Rothschild or UBS all are shutting down their offices in
China and moving out investments. These big giants are looking towards India and
hence you will find significant pay raises and job growth. Indian financial
market is just poised for a huge turnaround where new products investment
options and strategies will come. If the
NIFTY become 50000 or 70000 by 2030 then don’t expect that Indian investment options
will remain the same. New doors new opportunities and global product options
will come up which will create a new world of Investment products. The IFA community and financial advisory
platforms the so-called RIA models are yet to explore and grow. The Indian
financial market needs quality RIA’s and IFAs who will guide and navigate these
new products as NIFTY grows to 50000 levels or 70000 or 100000 mark.
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