We had seen extraordinary returns in equity mutual funds in past. But do you think past returns can be seen again in future?
We have seen exponential growth after 2014 elections and now markets are by all means over valued. After demonetization household money, bank FD, unaccounted money came into the market and that to via mutual fund route increasing the total AUM of the mutual fund industry. As number of SIP's are getting increased and money keeps coming into mutual funds they have no option but to buy stocks at premium or stop taking investment which handful of outperforming schemes did.
We have seen exponential growth after 2014 elections and now markets are by all means over valued. After demonetization household money, bank FD, unaccounted money came into the market and that to via mutual fund route increasing the total AUM of the mutual fund industry. As number of SIP's are getting increased and money keeps coming into mutual funds they have no option but to buy stocks at premium or stop taking investment which handful of outperforming schemes did.
Looking at the data it is clear that DII's are buying and FII's are selling. Of course, why FII's will hold their positions when they have earned handsome returns by investing early.
Everyone know market is trading at premium. For healthy growth some correction should happen in the market.
Corona is not yet gone. We had a big nose dive n splendid recovery from last year's March and April.
Lets see how it pans out.
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