Key Indian Benchmark Indices are up whopping 30% in the last 13 Months. Foreign Institutional Investors have bought total Equity of US$31 billion since then and their ownership of Indian equities has reached all-time highs. In contrast, domestic institutional flows have been negative (US$15 billion).
We can ascertain that one of the pockets where Domestic Investors have redeemed is the Insurance Related ULIPs to the tune of $3Bn in Nov-Dec 2012.. Investors were struck in these non yielding instruments sold by private Indian insurance companies which was a big day time loot and the Indian Government did little while complaints against Insurance Sector Piled up. With rising market, the average Indians (more…)