Domestic Mutual funds buy shares worth Rs 69,000 cr; FPIs just Rs 15,000 cr

By: | Published: December 13, 2015 11:08 AM

According to the latest Sebi data, mutual fund (MF) managers have invested a net Rs 68,924 crore so far this year in the equity markets, higher than a net sum of Rs 23,842 crore infused in the entire 2014.

mutual fundThe surge in inflows into equity schemes has prompted fund houses to pump money in the share markets.

Remaining bullish on equity markets, domestic mutual fund houses have purchased shares worth nearly Rs 69,000 crore so far this year, even though overseas investors scaled back their investments.

In comparison, Foreign Portfolio Investors (FPIs) made a net investment of just Rs 15,136 crore during the period.

However, in the last three years, foreign funds have made an average investment of USD 20 billion each in the Indian stock markets.

According to the latest Sebi data, mutual fund (MF) managers have invested a net Rs 68,924 crore so far this year in the equity markets, higher than a net sum of Rs 23,842 crore infused in the entire 2014.

The surge in inflows into equity schemes has prompted fund houses to pump money in the share markets.

Equity MFs, including equity-linked savings scheme, have seen a net inflow of nearly Rs 87,000 crore till November this year.

“Domestic mutual funds have been bullish on the stock market ever since the Narendra Modi-led BJP government came to power at the Centre,” Quantum AMC Managing Director and Chief Information Officer I V Subramaniam said.

In addition, robust inflows from retail investors in the equity segment have also helped.

Till April last year, holdings were facing liquidation due to redemption from investors and the money started pouring in from May 2014 and the momentum continued till this month.

They have made intensive buying especially in August and September 2015, when the domestic market crashed due to rout in Chinese equities. During that time, overseas investors pulled out from the Indian stock markets.

The sell-off by overseas investors in the Indian equity markets has given an opportunity to mutual fund managers.

Mutual funds are investment vehicles that pool funds collected from investors to invest in securities such as stocks, bonds, money market instruments and other assets.

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