There’s been a systemic change in investing in India. From a people who invested only in fixed deposits in banks, gold and real estate, we are moving towards equity investments - and more specifically - mutual fund investment.
For a long time, our markets were dependent on foreign institutional investors (FIIs)…but now with billions of dollars of inflows every month going into mutual funds from domestic investors - ordinary middle-class folks from our cities, towns and villages, domestic investors are the main movers in the market.
What this does is to make the market more stable. Domestic investors are here for the long-term and they invest through the SIP route. They are not fair weather friends like FIIs. So, while the market may move sideways now and then, we are headed for a secular bull market in India, which will last for the next 20-30 years. [cc: @ghemachandar1 bhai]