…..flows to turn unfavourable for MF and insurance There is a retail bond issue slated to hit the market offering attractive rates ….. demonetisation led to cash coming back to financial assets including MF ,Insurance , CASA of banking system This led to banks reducing their deposit rates The reduced rates made deposits unattractive which further led to banking deposits moving to MF and insurance ( MF industry almost double in last 3 years) During the same time money also started moving out of banks as currency with public started rising Now with system getting remonetised and inflation rising banking system finds itself short of deposits Hence we will have more retail issue leading to money moving out from financial assets,MF flows and insurance to these retail issues which are offering higher fixed rates ( a rate at which Indians always prefer deposits over other assets) Those who have extrapolated the past two years inflows into Financial assets as a trend will be disappointed because as more rates rise more money will leave other financial assets like MF and insurance to retail deposit issues A simple case of CAPITAL FLOWS