Why MFs invested less in equities in 2021
Dec 31, 10:12

While Foreign Institutional Investors (FIIs) withdrew money in bulk from Indian equity markets in 2021, domestic mutual funds (MFs) remained net-buyers and bought equities worth Rs 27,629. However, the money MFs put into equity was just a sixth of what they had deployed in the previous year. The funds did see more inflows through NFOs and SIPs, but they also saw large redemptions. One reason investors chose to pull money out was that the market peaked. Another was that they wanted to participate in direct equity, and a few investors were drawn to newly popular asset classes such as cryptocurrencies.

MF activity in equity market