Mutual funds (MFs) could emerge as the biggest investors in domestic markets, says Deutsche Bank.
It says domestic investors' flow into equities-mostly through MFs-could average Rs 140,000 crore ($20 billion) a year from 2018 to 2020. At their peak (between 2012 and 2014), foreign institutional investors (FIIs) invested an average of $20 bn a year in domestic equities. If the improvement seen in financial savings and equity preference continue, MFs' investments into equities could be higher than peak FII investments in the next few calendar years, say their analysts.