DIIs' ownership of Indian companies may soon overtake FII holdings

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FIIs holding hit a peak of 21.21% in December 2020.Shutterstock.comInvestments through the systematic investment plans into mutual funds rose to a record 17,610 crore in December, compared to 17,073 crore in November 2023...

Mumbai: The gap in ownership of Indian companies between domestic institutional investors (DIIs) and their foreign counterparts has narrowed to the lowest level ever as of December 2023..

Domestic institutional holdings in NSE-listed companies increased to 15.96% in December 2023 as against 13.77% in December 2018 or 10.49% in December 2013..

"Given the prevailing trend of domestic financialisation, characterised by increased household savings directed towards monthly flows into systematic investment plans, insurance, and similar instruments, it's evident that domestic institutional ownership is poised to surpass that of foreign institutional investors in the near future," said Mahesh Patil, chief investment officer, Aditya Birla Sun Life AMC..

The share of domestic mutual funds' ownership in companies listed on the NSE rose to an all-time high of 8.81% as of December 31, powered by strong net inflows of 58,198 crore during the quarter, according to primeinfobase.com data...

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