Is the golden period of retail inflows ending? Watch out for these factors

Strong inflows from domestic investors — both through the mutual fund route as well as the direct investing route — have helped cushion the market fall caused by record selling by overseas investors. Small investors have continued to keep faith in equity investing even as stocks have come off sharply from their highs. In the past 12 months, an estimated Rs 4.5 trillion of retail inflows has entered the domestic equity market — making it a golden period for retail inflows. However, is the retail story nearing its end?

In a note, Jefferies has highlighted four factors that have historically