Yesterday (30-November-2016), again FIIs (Foreign Institutional Investors) were net sellers of Rs.434.42 crores whereas DIIs (Domestic Institutional Investors) were net buyers of Rs.676.68 crores in Indian cash equity market.
Refer my post on Diversify Your Risk By Investing In Mutual Funds. I had said that in the medium term it is the decision of DIIs (Domestic Institutional Investors) which performs better than the FIIs (Foreign Institutional Investors). I think the reason is pretty simple.
Who knows better about financial conditions of India? An Indian or a Foreigner? Of course an Indian, so in the long term it is the DIIs (Domestic Institutional Investors) whose portfolio performs better than the FIIs (Foreign Institutional Investors).
The result is in front of you. Indian markets have started showing signs of positive move since the time DIIs turned to buyers. It is been very long since FIIs (Foreign Institutional Investors) were sellers while DIIs (Domestic Institutional Investors) were buyers. I think once Nifty reaches levels of 8500+, DIIs (Domestic Institutional Investors) will start selling stocks to book profits, and who pays them the money? FIIs (Foreign Institutional Investors), of course will turn to buyers.
Isn’t it quite strange that FIIs (Foreign Institutional Investors) who are suppose to be more educated in foreign suits and MBA’s from top universities in US, UK or Australia are actually not taking the correct decision to buy and sell in Indian equity markets?
The world is a proof that only highly qualified people cannot take the correct decision. If you have good education from any institute anywhere in the world and if you are willing to know the reality coming out of the books and face the reality and difficulties of life and have the will power, and willing to world hard, have patience in the long term it is you who will perform better than those who think they are the boss of the world because they did MBA from the top university in US or UK.
My own cousin who studied in Kendriya Vidyalaya from 1 to calls 12th, and did computer science engineering from IIT Kanpur, is working as one of the main employees with lots of responsibilities in Java division in Android applications in California.
Of course due to security reasons I can neither reveal his name neither the name of the company he works for.
He is very young and 2 years back bought a home (not flat) worth USD $1 million (Rs. 6.8 crores) in California, USA where his company head headquarters are located. You know his father (my uncle – he is younger brother of my father) was a government employee and when he retired got his last salary of just Rs. 3000/-. He has a daughter too, she too is an engineer.
Now how many so called born rich kids in US who studied in top universities in USA are getting even half the salary he is getting? Not many. This is what hard work can do over the long term. Just having money and getting into a big university will not make you clever or educated. Books do not give you education if you have the money to buy them, they give education and knowledge if you have the will power and put your hard work to study them.
Coming back to DIIs and FIIs. It is not about one or two months I am watching them. I am reading about their buying and selling patterns since 2010. It has been 6 years now and almost every time in the long term (4-6 months), I see that it is DIIs (Domestic Institutional Investors) prove to be the correct decision makers. I am not saying that FIIs lose money and only DIIs make money in Indian markets. I am saying that DIIs bring more profits for their investors than the FIIs.
So, if you are a long term stock investor or long term mutual fund investor, follow DIIs (Domestic Institutional Investors) buying and selling patterns. Do not follow the FIIs (Foreign Institutional Investors) buying and selling patterns.
This will help your portfolio to bring better results and more profits.
Click to Share this website with your friends on WhatsApp
COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.
INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.
DISCLAIMER: I am NOT an Investment Adviser (IA). I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.
My student gets the Winner's Certificate of Zerodha 60-day Challenge - Click here and Open Stock Buy and Sell Free Account with Them Today!!!
Testimonial by a Technical Analyst an Expert Trader - Results may vary for users
60% Profit Using Just Strategy 1 In A Financial Year – Results may vary for users
Testimonial by Housewife Trader - Results may vary for users
Comments on this entry are closed.
Hi sir,
Your article is awesome.
Thanks