MFs mark FY15 with Rs 40,000 crore equity inflow; first in six years
New Delhi: Mutual funds 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 inflows have been mainly on account of positive investor sentiment, helped by the government's reforms agenda and improved fundamentals of the economy. Besides, fund managers invested a net amount of Rs 5.87 lakh crore in debt markets in the past financial year, which ended on March 31. Mutual funds (MFs) are upbeat about overall inflows in equities and debt markets for the current financial year (2015-16) as well. According to the latest Sebi data, mutual fund managers invested a net sum of Rs 40,722 crore in 2014-15 while they pulled out over Rs 14,000 crore in the preceding financial year.
The last fiscal witnessed a net inflow after seeing outflows, on net basis, for five consecutive financial years. Between 2009-10 and 2013-14, MF managers had cumulatively sold shares worth a net amount of over Rs 68,000 crore. Prior to that, they had bought shares worth a net amount of Rs 6,985 crore in 2008-09. Experts have attributed the inflows in equity markets to the 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. 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. In comparison, Foreign Portfolio Investors (FPIs) made a net investment of over RS 1 lakh crore into equity markets during the fiscal ended last month. Mutual funds are investment vehicles that pool funds collected from investors to invest in securities such as stocks, bonds, money market instruments and other assets.
