The Indian financial markets are once again proving an important lesson to investors: short-term fear rarely changes long-term wealth creation. Two recent developments paint a fascinating picture of the current investment environment: Foreign Portfolio Investors (FPIs) have pulled out over ₹2 lakh crore from Indian equities within just five months, one of the largest outflows in decades. At the very same time, Indian mutual fund investors continued pouring money into the markets, with equity...

Over the past few weeks, many investors have noticed their mutual fund portfolios declining. This has naturally raised concerns and questions about whether the market is entering a difficult phase. However, when we look closely at market valuations, an interesting picture emerges. The correction we are seeing is not necessarily a negative development, it may actually be a healthy reset for the market . Let’s break this down in simple terms. What Are Market Valuations? A common way to measure...

Over the past three years, one of the most discussed forces in the Indian equity market has been the behavior of Foreign Institutional Investors (FIIs), also known as Foreign Portfolio Investors (FPIs). Traditionally seen as the “market movers,” FIIs once dictated short-term direction in Indian equities. But recent years have revealed an important structural shift, India’s markets are evolving, and their dependence on foreign money is changing. Let’s understand what really happened. The...