Mutual funds managers pumped more than Rs 30,000 crore in the stock markets during April-July of the current fiscal due to strong participation from retail investors.
In comparison, foreign portfolio investors (FPIs) bought equities worth 21,000 crore during the period under review.
“We have been witnessing a shift in investment towards equity class as investment avenues like real estate and gold are not doing well,” Vidya Bala, head mutual fund research at FundsIndia.com said.
Besides, domestic fund inflows have been looking at the long-term story. Also, they are buoyed by continued strong inflows from retail investors, she added.
“The rally in stock markets was the primary reasons for the robust inflows in equities,” Bajaj Capital CEO Rahul Parikh said.
Besides, successful implementation of GST with no major business disruptions being reported, drove fund managers into equities, he added.
Mutual fund managers invested a net sum of Rs.30,264 crore in April-July period of the current financial year, as per data released by the Securities and Exchange Board of India (Sebi).
Month-wise, fund managers invested a net sum of Rs.11,244 crore in stock markets in April, Rs.9,358 crore in May, Rs.9,106 crore in June and Rs 11,800 crore in July.
The inflow is in line with BSE’s benchmark Sensex rising around 10 per cent during the first four months of the current financial year.
At present, the mutual fund industry is managing an asset base of about Rs.20 lakh crore mark.
Going ahead, fund houses are upbeat over the industry’s performance for the entire current fiscal, while expecting investment from new investors to fuel growth of the sector.
A mutual fund pools in assets of its investors and invests the money on their behalf. It provides diverse investment instruments like stocks and bonds without requiring investors to make separate purchases and trades.