MoneyVedam

DIIs (Domestic Institutional Investors) The largest DII in the capital market is LIC followed by other insurers and Mutual fund houses. LIC has a total assets under management of Rs.17.69 Lac crores ($295bn) and it has an investible corpus of Rs.2.25-Rs.3 Tn ($38-$50bn) p.a to invest in capital markets. LIC predominantly invests its corpus in government debt (80%) and the rest 20% in equity markets. Typical size of equity investment is Rs.550 bn ($9.1bn). Mutual Funds too invest about 80% in debt market and 20% in equity markets but their total AUM (Assets Under Management) itself forms only 60% of LIC's AUM. RIs (Retail Investors) The so called 2% retail investors that invest directly in equities are typically driven by market sentiments. They buy high & sell low only to realize that equity is a zero sum game. However a selective few that understands the market have stayed long for 7-15 years and have realized 20-25% annualized returns. Is RI the ACTUAL DII? Looking at

Market capitalization of India's equity market touched Rs.100 Trillion ($1.67 Tn) in early December 2014. Market cap is the market value of all listed stocks multiplied by their respective market value. On a relative scale, the market cap of India is now at par with Germany & France and have surpassed those of Australia, Brazil, HongKong, Korea & Switzerland. US has the highest market cap in the world at $18.66Tn while China and Japan come next at $3.7Tn. Five years ago, during the 2009 financial crisis, market cap of Indian equity market was Rs.30 Trillion. For those who had stayed invested for the long term, their annualized returns would have been 27% p.a. However we hear a lot about FIIs (Foreign Institutional Investors) entering and exiting the markets there by making huge money from Indian equities. Let us look at the FII and DII (Domestic Institutional Investors) statistics in detail. FIIs (Foreign Institutional Investors) As per recent reports, FIIs have inves