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Mutual fund inflows in equities hit seven-year high of Rs 7,600-cr in April

Mutual fund managers pumped in over Rs. 7,600 crore in equity markets in April, making it their highest net inflow in more than seven years, mainly on account of positive investor sentiments and the government’s reforms agenda.

In comparison, they pulled out Rs. 2,698 crore from the stock markets in April 2014.

According to the latest Sebi data, mutual fund (MF) managers invested a net sum of Rs. 7,618 crore in April this year.

This was the highest net inflow in equities since January 2008, when fund managers poured in Rs. 7,703 crore.

Besides, fund managers invested a net amount of Rs. 28,650 crore in debt markets last month.

Experts have attributed this strong inflow in stock markets to positive investor sentiments, government’s reforms agenda, improved fundamentals of the domestic economy and increased participation from retail investors.

However, industry body Association of Mutual Funds of India’s (Amfi) decision to put one per cent cap on upfront commission paid to distributors may impact the sector, they added.

Fund managers have shown interest in equity markets in the past one year. They pumped in over Rs. 40,000 crore in equity markets in 2014-15, making it their first net inflow in six years, for an entire fiscal.

The huge inflows also helped the MF industry reach around Rs. 12 lakh crore mark in assets under management (AUM) at the end of the financial year.

Moreover, MFs are upbeat about overall inflows in equities and debt markets for the current financial year as well.

MFs 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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