Indian retail Investor makes many companies profitable by using their product s and services but when it comes to participate in the profit, we offer “Front Seat” to FIIs (Foreign Institutional Investors)!!
Have you ever thought that instead of putting your money for 10 years in Bank FDs, I should have part of ownership with such great banks like SBI, ICICI or HDFC whom I trust the most? Yes, ownership can be obtained by directly buying shares of these companies or by just investing thro’ Mutual Funds. If you go thro’ data of last 10 years of these banks, it shows that % return from “FD” is quite less than % return from shares!! Not only that it is absolutely “tax – free”. Taking further, we take house loan, car loan, personal loan from these banks and increase their profitability or say consume products like soaps, shampoos, biscuits etc. and participate 100% in consumption but when it comes to sharing in profit we pass on to FIIs!!!
Indian Investors share only 18.5% of profit (and ownership) in a company like HUL (Hindustan Unilever Ltd. ,producer of above products) and allowing FIIs to get bigger share in spite of the fact that 100% consumption is made by Indians. Another example is HDFC Bank Ltd. Only 26% of shares are owned by Indian Investors (including Indian Institutional Investor s like MF & Insurance co.) and 51% is owned by FIIs. Unfortunately, Indian Investors are putting Two Third of their savings in Houses and Gold!!
Just think now before putting your money whether you are satisfied with contributing 100% in consumption of these products/services OR want to take the opportunity to participate in the profit also?
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