Posted on November 20, 2024 by Mumukshu Desai 
In 2008, during the worst global financial crisis, Foreign Institutional Investors (FIIs) withdrew Rs.41,000 Crores, and the Indian stock markets crashed by a jaw-dropping 50%. Half the market wealth vanished.
In 2020, amid the global health crisis, FIIs pulled out Rs.58,000 Crores, causing a 20% market drop.
Now, in October 2024, FIIs have withdrawn an even larger Rs.84,000 Crores, yet the markets have fallen by only 5%-6%.
Why??
The answer lies in you. Domestic Institutional Investors — everyday investors like you — have been consistently fueling the market through SIPs and lump-sum investments in mutual funds. Monthly SIP inflows have reached Rs.24,000 Crores, with additional support from insurance companies, EPFO, and retail investors.
This surge in domestic liquidity has created a powerful buffer, keeping the markets stable. Every time FIIs sell and return later, they find themselves buying at higher prices.
This liquidity trend is here to stay, and it’s likely to continue driving the market forward. Invest in Indian Equity Mutual Funds with confidence…