Lessons from Jhunjhunwala’s once-in-a-lifetime bullish turn

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₹2,000 crore, compared to the ₹30,000 crore that flowed into them during the IPO boom in the mid 1990s.He also noted that the development of India’s MF industry is set to explode after its release from ‘strangulation by UTI and other public sector MFs.’ Jhunjhunwala was also anticipating support from the market from pension and provident funds that did not invest in equities at the time. Yes. In January this year, the monthly (not annual) flow into systematic investment plans alone crossed ₹18,000 crore.

Today, India has about 45 asset management companies, most of them in the private sector. India’s EPFO (employee provident fund organization) now invests about 15% of its incremental corpus in equity. In the National Pension System, non-government subscribers can allocate up to 75% to equities.

Still, there is a long way to go for Indian households to build a substantial equity allocation. MFs currently account for just around 8% of household financial assets and about 4% of all household assets. In 2002, Jhujhunwala wrote that the trading system had changed—brokers were no longer taking percentages but basis points.

Physical trading had been replaced by ‘glass screens’ computerization. Badla, a stock market term, had been replaced by derivatives and dematerialization had been achieved at an extremely fast pace. Yes.

All the trends mentioned by Jhunjhunwala continued to gather momentum over the next two decades. Trading facility is now offered for free by many discount brokers (only futures and options, or F&O, is charged). Many investors place orders over their mobile apps, while the time for settlement of trades has been reduced by market regulator Sebi to T+0, with an optional instantaneous settlement also being made