The sharp October selling, sparked by FPIs, did not correct the market to the extent it would have in the past. One reason is that domestic institutional investors (DIIs) – which include mutual funds – absorbed a part of the selling. And they were able to do so because MFs have been getting a steady flow of money through SIPs. They have seen their assets under management (AUM) grow rapidly, strengthening their bottom lines. Will this trend continue? Probably, yes. Why? Because the financialization of saving is just beginning in India.
