Series 76 – FII vs DII and Individual Investors – A Decade of Transformation

In recent episodes, we’ve been discussing our approach to portfolio positioning in the current market cycle. This week, we want to highlight some intriguing data from the NSE, showcasing the shifts in net inflows from FIIs, DIIs, and individual investors over the past decade. It is important to understand what structural growth in India is.

As of August, the number of unique registered investors in India surpassed the 10-crore mark. Indian households now hold nearly 19% of the market, amounting to Rs. 81.4 lakh crore, which represents almost a fifth of their financial wealth and 28% of FY24 GDP. The median age of investors today is approximately 32 years, with 40% under 30. This is a significant shift from the pre-pandemic median age of 39 years. We believe that the rise in digitisation, increased investor awareness, improved market access, and the market’s relative performance against other asset classes have driven this surge in market participation since the pandemic. This structural growth is expected to continue and sustain in the long run.

In the short term, we anticipate continued volatility, which we view as opportunities to build portfolios for long-term returns.

We will come back with more interesting information on the portfolio and outlook on the market in the following weeks.

Also, we keep writing to you about our SIP program that presents investors with a convenient avenue to regularly infuse capital into the client’s portfolios. Feel free to check out the benefits for your clients. If you need more info, reach out to your dedicated relationship manager at [email protected].

These weekly episodes are now available in our website for your quick read and you may access the same in the below link.

Weekly Enlightenment Archives – ITUS Capital