Investors have pumped in more than Rs. 1.6 lakh crore in various mutual fund schemes in the first ten months of the ongoing financial year, more than double the amount infused by them in entire 2012-13 fiscal.
According to industry experts, fund mobilisation in mutual fund schemes is expected to further grow as regulator Sebi has recently cleared its first ever long-term policy for the industry, proposing a number of tax benefits and measures for growth of this business. The policy is aimed at channelising household savings into equities and mutual funds.
As per the latest data available with Sebi, there was a net inflow of Rs. 1,59,631 crore during the 2013-14 fiscal (April-January) as against over Rs. 76,000 crore in the preceding fiscal.
Prior to that, a net amount of more than Rs. 22,000 crore and over Rs. 49,000 crore moved out of the mutual funds’ kitty during 2011-12 and 2010-11, respectively.
Mutual funds pool together money from many investors and invest it on their behalf, in accordance with a stated set of objectives.
At a gross level, mutual funds mobilised over Rs. 81.4 lakh crore during the April-January period of 2013-14, while there were redemptions worth Rs. 79.8 lakh crore as well. This resulted in a net inflow of Rs. 1,59,631 crore.
Of the total net investment made in the first ten months of this fiscal, the huge part of inflows in the mutual fund schemes came during April and May. Investors have infused a net amount of Rs. 1.44 lakh crore during the period.
In April, mutual funds mobilised around Rs. 1.08 lakh crore in various schemes. This was the highest net inflow by investors in such schemes in a single month since April 2011, when investors had put in a whopping Rs. 1.84 lakh crore.
The significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs. 9.03 lakh crore at the end of January this year from Rs. 8.25 lakh crore as on December 31, 2013.