Strong inflow of funds into equity schemes has also helped the domestic mutual fund.
Representational image
Mumbai: Expectations about a stronger recovery in do-mestic economic growth and corporate earnings have prompted small investors to place their bets on equity market over other asset classes in 2015 till date. Among the various schemes offered by mutual funds, equity schemes have received the highest inflow of Rs 63,947 crore taking their total asset under management (AuM) to Rs 3.62 lakh crore as at the end of November 30, 2015.
According to the latest data available with the Association of Mutual Funds in India (AMFI), liquid and money market schemes have received the second highest investment this year followed by income funds.
On the other hand, Gold Exchange Traded Funds (ETF) and Fund of Funds investing in the overseas markets are the only categories that have witnessed a net outflow of funds. While liquid/money market schemes witnessed a net inflow of Rs 58,480 crore, the net investment in income finds stood at Rs 40,572 crore. As compared to them, Gold ETF and overseas funds have seen an outflow of Rs 529 crore and Rs 322 crore respectively during the first eleven months of this calendar year.
“The outlook for the equity markets as an asset class has seen a sharp improvement amidst expectation about a recovery in domestic growth and corporate earnings. Investors are also expecting equity market to fare better than other asset classes like gold and real estate in the medium to long term. So most of the small investors who are actively looking at investing in the equity markets are coming through the mutual fund route where they have the advantage of the professional expertise of the fund managers. This is the main reason why, equity schemes have seen strong inflows this year, which is one of the highest in the recent past,” said Dinesh Khara, managing director and CEO of SBI MF.
The strong inflow of funds into equity schemes has also helped the domestic mutual funds to become the largest investor in the Indian equity market. The MF industry has invested a total of Rs 69,653.61 crore in local equities in 2015 till date, which is over 4 times the amount invested by foreign portfolio investors (FPI). During this period overseas investors bought shares worth Rs 15,690.33 crore. “Retail investors were little late to enter the current bull market rally, which started during the later part of 2013. Fresh participation from small investors really picked up momentum during the second half of 2014,” noted Uday Narayan Dubey, V-P, institutional desk at R.K.Global.
Download the all new Deccan Chronicle app for Android and iOS to stay up-to-date with latest headlines and news stories in politics, entertainment, sports, technology, business and much more from India and around the world.
( Source : deccan chronicle )
Next Story
