Good Narration from Venu. People can distinguish speakers who r Godi bhakts and those who r not. For example we heared a speaker on India’s inflation @3.5 when people r unable to buy vegetables. Ofcourse everything is free or subsidised I n Parliament or sarkari bungalows so obviously Sita will not know what is inflations. For her and RBI indian inflation is lower than Japanese inflation
DII's can't sit on cash beyond a certain portion of their AUMs, probably coz of them being liable to their investors to stay invested. So they deploy money into stocks, despite the realization that the valuations are totally out of place. In such a situation, FIIs get to exit stocks at high profits and when the imminent and warranted correction occurs, DIIs take a significant cut in their portfolios. In a bullish market, there's an increased retail investor interest in equities and fund houses try to tap this opportunity by launching new equities focused schemes, to cash out on such an opportunity which is by drawing commissions. Then, such new money is deployed into stocks that are already trading at starkly unreasonable valuations, which cannot be justified even by discounting farther long term earnings of these companies. And when prices align to levels justified by valuations, ie by undergoing a cut, then it's ultimately the retail investors who end up losing money. There's not much to lose for institutional investors, whether DIIs or FIIs.
Good Narration from Venu. People can distinguish speakers who r Godi bhakts and those who r not. For example we heared a speaker on India’s inflation @3.5 when people r unable to buy vegetables. Ofcourse everything is free or subsidised I n Parliament or sarkari bungalows so obviously Sita will not know what is inflations. For her and RBI indian inflation is lower than Japanese inflation
DII's can't sit on cash beyond a certain portion of their AUMs, probably coz of them being liable to their investors to stay invested. So they deploy money into stocks, despite the realization that the valuations are totally out of place. In such a situation, FIIs get to exit stocks at high profits and when the imminent and warranted correction occurs, DIIs take a significant cut in their portfolios.
In a bullish market, there's an increased retail investor interest in equities and fund houses try to tap this opportunity by launching new equities focused schemes, to cash out on such an opportunity which is by drawing commissions. Then, such new money is deployed into stocks that are already trading at starkly unreasonable valuations, which cannot be justified even by discounting farther long term earnings of these companies. And when prices align to levels justified by valuations, ie by undergoing a cut, then it's ultimately the retail investors who end up losing money. There's not much to lose for institutional investors, whether DIIs or FIIs.
ABCD : American educated confuse desi
India doesn’t live monsoon to monsoon.. the corona and last years have proved that