Encouragingly, this pronounced risk/return tradeoff has changed for the better in more recent years. Indeed, the historically elevated volatility of India’s stock market has come down significantly since the 2008 global financial crisis (GFC) — much more so, in fact, than in many other world equity markets over the same period (Figure 2). We attribute this rapid decline in realized volatility largely to a shift toward more domestically driven asset flows (Figure 3): Today, unlike the pre-GFC era, Indian investors themselves are the primary owners of India equity. As a result, the market, now less susceptible to foreign investor sentiment, has become more stable and meaningfully less volatile.