FII Dilemna with Indian Equities

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 9.62% * (1-12.5%) = 8.42 - 3.5 = 4.9%


We love to blame. As a country we bash FIIs everyother day for pulling money out of Indian Markets.


In 2.5 months of 2025 only, FIIs have sold more than INR 1.35 Lakh cr. of Equity shares.

January - 78,000 Cr.

February - 34,500 Cr.

Till March 7 - 24,700 Cr.


Are they fools to not invest in the "Highest Growing Economy in the world", "The world's upcoming manufacturing hub", "Biggest Youth Population" etc etc.


Fund managers are managing those huge funds and they have to show returns to their Investors sitting in US, Europe, China etc.


And what do you think Indian Equity Market has earned for them in last 10 years?


Just give it a guess for once..


Just for context, return of US indexes over last 10 years:

S&P 500 -> 10.43%

NASDAQ 100 -> 16.15%


BSE Sensex returns - 9.6% p.a.


Even at its peak in September its 10 Year CAGR was ~12.4%.


Now comes the exciting part - INR has depreciated ~3.5% p.a. over last 10 years.


What does those investors earn on their "USD" investments - 9.6% - 3.5% that comes out to be just 6.1%.

(For easier and better calculations, you can directly track BSE Dollex indexes)


How someone in thier senses would invest for such a lower returns, that too before considering Country Risk Premium and CAPITAL GAINS tax that the government will deduct over what FIIs earn.


9.62% * (1-12.5%) = 8.42 - 3.5 = 4.9%


(Oversimplified the calculation for understanding)


Even US Risk Free Treasury Yield is currently at >4%. Then Why pay for those managing funds? Why taking huge risks of investing overseas?


"Part 2 of still holding, still learning, still figuring things out. But not blindly..."(to be continued ^_~ )


Best Regards,

Your newly ignited newbie investor,

Devansh Singla

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