Stocks: New players, old behaviour

I remain bullish because of a combination of two factors: Massive government expenditure and the resilience of Indian consumers

Here are two sets of bare facts. One, private mutual funds were permitted to be set up in 1993 and in the next 21 years, until the end of 2014, their equity investment had gradually touched Rs 2 trillion, spread across pure equity funds, balanced funds, and equity-linked savings schemes. At the current rate of growth, by March 2024, equity assets held by mutual funds are expected to touch an astounding Rs 24 trillion. This implies a stunning 12 times growth rate the past decade, a compound annual growth rate of 28.2 per cent. This is the story of institutionalisation