“Maybe the popular narrative that retail investors are clueless and “gambling” isn’t fully accurate. That’s because you would expect direct equity investors to do worse than mutual fund investors,” he said.
Most of Zerodha’s AUM was added post-2020, which is one of the biggest bull markets India has seen.
While equity funds saw a slowdown in the pace of inflows, investments through the systematic investment plan (SIP) route hit record high in November.
Investments through SIPs stood at Rs 17,703 crore, compared to Rs 16,928 crore. SIP AUM as of November-end stood at Rs 9.3 lakh crore.
Smallcap funds saw net inflows of Rs 3,699.24 crore in November, though this was lesser than Rs 4,495 crore worth of inflows in October. Midcap funds saw inflows of Rs 2,666 crore.
On the back of strong macro data and BJP’s win in recent assembly elections, equity markets posted the longest weekly winning streak in three years, as they rallied to record highs.Nifty50 and Sensex rose about 3.5% to log their best week since July 2022. The blue-chip indices have gained for six straight weeks.
With the primary trend favoring bullishness, analysts said sector rotation is expected.
“Traders are advised to focus on thematic movements for potentially outperforming trades while remaining vigilant in the dynamic market environment,” said Ameet Chavan, Head Research – Technical and Derivatives, Angel One.
In the upcoming week, the focus will be on crucial releases, including inflation data from India and the US. The outcome of the awaited Fed policy meeting will also be pivotal in shaping market sentiments.
(Subscribe to ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)