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Despite being net sellers in the secondary market, foreign portfolio investors are significantly increasing their investments in Indian IPOs, with a threefold surge to 26,508 crore in FY25. This indicates strong confidence in India's growth story, driven by the potential for higher returns and access to differentiated business models.
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Indian markets experienced a significant downturn on Tuesday, with both the Nifty and Sensex falling by over 1% due to the US imposing a 25% tariff. Except for FMCG, all sectoral indices declined, with realty, PSU bank, and consumer durables taking the biggest hit.
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Wealth planners are promoting Systematic Withdrawal Plans or SWPs. It is a tax-efficient method to withdraw from mutual funds. SWP offers a steady income stream, unlike fixed deposits. Investors can withdraw a fixed amount regularly. A withdrawal rate of 3.5% to 4% annually is advisable. Market performance impacts SWP success. A prolonged market downturn can deplete the corpus faster.
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