After FII, will retail investor flows into equity market also shrink?

Over past decade, strong retail flows have coincided with declining / low deposit rates, said analysts at Jefferies, who expect the deposit rates to go above the 7 per cent level with a lag

At a time when the foreign investors have been on a selling spree across most emerging markets, including India, flows from mutual funds via the systematic investment plan (SIP) route and directly into equities by retail investors have supported the markets. However, the headwinds – inflation, rising interest rates and an upturn in the real estate cycle, according to analysts, may dent flows into equities as an asset class going ahead, they believe.

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“A record over $60 billion retail inflow (through mutual funds & direct) into domestic