Mutual funds invested Rs 5,234 cr in stocks last month

Mutual fund houses have net purchased stocks worth Rs 5,234 crore in the month of January, as per the data on the Securities and Exchange Board of India or SEBI. This is the six straight month of inflows as retail investors continued to put money in equity schemes.

In terms of investments in the debt market, fund managers invsted over Rs 31,000 crore in the debt market last month.

MFs witnessed an inflow of Rs 9,179 crore in December, Rs 13,775 crore in November, Rs 9,129 crore in October, Rs 3,841 crore in September and Rs 2,717 crore in August.

Prior to that, fund managers had pulled out Rs 34 crore from the stock markets in July.

Fund managers have been putting in money in the stock market since August last year due to a sharp plunge in equities. They had pumped in over Rs 43,000 crore in stock markets during the period.

Generally, fund managers step up their buying whenever equity markets undergo a sharp correction.

"Investors flocked to equity schemes and inflows were largely via SIPs or systematic investment plans," said Jimmy Patel, Chief Executive Officer, Quantum Mutual Fund.

At a time when FPIs are selling, domestic investors are major investors in the equity market.