Hey All,
Investment in stock market is subject to market risk and we all know it. But do we know the breakdown of the real stakeholders i.e. who actually owns the Indian stock market, percentage-wise? In this blog post we will uncover the true picture of ownership and see how much is held by retail investors, foreign institutions, mutual funds, governemnt of India and others. Well here is the clear picture that I got from my X feeds and it talks excatly about that. Let’s see who truly holds India’s market power — from retail investors to FIIs [Foreign Institutional Investors] and mutual funds. To be honest it was good to see this picture and get some idea on the investment percentages from different sectors. Similarly it would be good to see for other countires. I will see if I can get anything on the similar lines and will share the same in my next post.
It is clearly evident that Promoters hold the largest share at 40.9%, having the major control.Foreign Portfolio Investors (FPIs) come next with 17.4%, showing strong foreign participation. Mutual Funds and the Government of India each own about 10%, indicating institutional and state presence. The retail investors i.e. the everyday traders account for 9.8%, and is a growing segment. Banks, Financial Institutions & Insurance companies hold 5.3%, while others make up 6.6% of the total. In all we can say that the rising share of retail investors and mutual funds signals growing domestic confidence and financial awareness. The more percentage gets added by the mutual funds and retail investors the stronger and more balanced India’s market ownership becomes. In my case I have a decent portfolio that attributes to direct investment in different types of stocks from large caps and mid caps and at the same time I have SIPs [Systematic Investment Plan] running for around Rs.20K a month. I have been investing in two mutual funds house which are ICICI mutual fund and Nippon India Mutual Fund (formerly Reliance Mutual Fund). The main strategy that I follow here is that whenever there are stocks that is giving me a profit of above 25% or more I book profits and shift to investing in other stocks or DCA buying other stocks where I am incurring hefty losses.For mutual funds, the strategy is to continue with SIPs and not touch them, letting compounding do its magic over time. I’ve personally chosen dividend payout mutual funds, so I receive regular returns/income without touching the major corpus. Well this should be it for todays post on - "The Real Stakeholders - Who Owns the Indian Stock Market?"... Happy Investing.. cheers
Image Source:: Stocksified
Best Regards
Paras