Monday, January 25, 2021
Foreign investor flows have taken a backseat over the past couple of years with retail investors now being in the driver’s seat, suggests a recent report from foreign brokerage firm UBS.
“Overall, when we combine household equity savings through mutual funds and direct share purchase, we see that households are a material force to be reckoned with: overall 25 percent higher than foreign portfolio investment (FPI) net inflows over the last two years,” a January 20 UBS note said.
the key trigger for the increased retail participation in equities has been the lockdown triggered by Covid-19 that saw investors channelizing their savings to capital markets in search of a better return on their investments and the need to increase their disposable income. The share of client participation in capital markets at the NSE for individuals rose to 46 percent in fiscal 2020-21 (FY21) on a YTD basis, as compared to 39 percent in FY20, UBS said.
