Thread by @nooreshtech

#MythBuster - A thread - Yesterday, when markets were up and are up today, have seen numerous messages as to how #LIC has been put to work to prop up the markets and also how #LIC Ipo is a risk as their investments need to be sold or they will have to be independent ...

Lets take it through the numbers as to how relevance of #LIC in the #Equity Markets has detoriated. 1) #LIC puts in a net of 50-60k crores a year on an average. #MutualFunds in last few months hold 25-40k crores of cash and 8000 crores of monthly inflow through #SIP.

2) Total Value of #MutualFunds in #Equity has surpassed #LIC value quite some time back. 3) #SIP at almost 90-100k crore is double the money #LIC can deploy. 4) #EPFO averages 25000-30000 cr will soon cross #LIC. Thanks to it #SBI Nifty 50 ETF is now 66000 cr and largest #MF sch

5) #FIIs sold max 70-90k cr in 2008 and 5% of their holding value at peak of 2008. Today a similar number would be 1.2-1.5 lakh crores. #SIP + #EPFO is now equal to that number. Not even considering lumpsum inflows etc.

So if you have to give credit for the markets to be up it should be the 1.5-2 cr #MF investors having 8.5 cr plus folios and #EPF of same and the #Indian Investor instead of #LIC :) As a total market cap exposure 12-14% is domestic money and 18-24% Foreign Money !!

Over the next 5 years we could expect #Domestic Money which is important for current market strength also to become equal in size to #FIIs and still #dividends #ltcg to be borne by #domestic investors - hope we see some encouragement from @nsitharaman