Mutual funds pumped in Rs 5,200 crore in equity schemes in February, taking the total inflow to over Rs 61,000 crore in the first 11 months of the current financial year on the back of positive returns.
It was the 12th consecutive month when equity mutual funds witnessed an inflow. Moreover, mutual fund houses are expected to be upbeat about inflow into equity schemes for the remaining part of the current fiscal, ending March 31.
According to the latest update available with Association of Mutual Funds in India (AMFI), equity funds saw net inflow of Rs 5,217 crore in February as compared to Rs 5,850 crore witnessed in the preceding month.
The latest inflow takes the total fund infusion in equity MF schemes to Rs 61,089 crore at the end of February. However, equity funds witnessed an outflow of Rs 5,526 crore during April-February in the year-ago period.
This inflow has helped in increasing mutual fund equity assets base to Rs 3.07 lakh crore in February from Rs 1.57 lakh crore a year ago. Industry experts said equity markets have delivered positive returns that attracted retail investors into such schemes. "There has been change in sentiment over the past few months, especially after the general election's verdict in May.
We are witnessing a trend where more and more investors are coming back into financial assets. Positive investment returns have also attracted investors into equity segment," said an industry expert. Inflow in equity schemes have helped the 45 mutual funds to cross Rs 12 lakh crore mark in assets under management (AUM) at the end of February.
The inflow in equity funds is in line with the BSE's benchmark Sensex surging by 31 percent in the first 11 months (April-February) of the current financial year. After witnessing an outflow in March 2014, equity mutual funds started the financial year on a positive note.
The inflow in such funds increased in May due to change in sentiment, supported by the outcome of general election, and the inflow continued till last month.
Experts expect that this scenario will continue in the coming months as well. Mutual fund is an investment vehicle with a pool of funds collected from investors to buy securities such as stocks, bonds, money market instruments and similar assets.
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