Investors pump in Rs 47,000 crore in mutual funds in Oct

Investors pumped in nearly Rs 47,000 crore in various mutual funds during October, making it the highest net inflow in six months, after a net outflow in the previous month.

hidden December 03, 2012 16:50:04 IST
Investors pump in Rs 47,000 crore in mutual funds in Oct

Mumbai: Investors pumped in nearly Rs 47,000 crore in various mutual funds during October, making it the highest net inflow in six months, after a net outflow in the previous month.

At gross level, mutual funds mobilised a total amount of Rs 5,92,871 crore, while there were redemption worth Rs 5,46,151 crore as well -resulting into a net inflow of Rs 46,720 crore, as per the latest data available with Sebi.

Investors pump in Rs 47000 crore in mutual funds in Oct

However, investments made by mutual funds into the secondary stock market fell sharply in October to Rs 14,478 crore. Reuters

This was the highest monthly net inflow since April, when investors had poured in Rs 92,746 crore in mutual fund schemes. There were net outflows of Rs 51,907 crore in September.

However, investments made by mutual funds into the secondary stock market fell sharply in October to Rs 14,478 crore, from Rs 46,911 crore in the previous months.

The mutual funds collect money from investors and later invest the same into various market segments including stocks, IPOs (primary market) and bonds.

Market analysts expect the net inflow into mutual funds to further pick up in the coming weeks, as the government and Sebi have expressed their intention to revive equity culture in the country and help channelise the household income into stocks, mutual funds and insurance sectors, rather than in idle assets like gold.

"The current market conditions and wide-ranging reforms announced by Sebi to re-energise the mutual funds industry would help the sector to channelise funds in the equity market," Sudip Bandhopadhyay MD and CEO at Destimoney Securities said.

He also said the stock market and mutual funds stand to attract more investments from the Rajiv Gandhi Equity Savings Scheme, but it could be initially complicated for first-time investors. "During October 2012, mutual funds saw a net inflow of Rs 46,720 crore (of which Rs 34,901 crore were mobilised by private sector and Rs 11,819 crore by public sector) as compared to a net outflow of Rs 51,907 crore (of which Rs 37,588 crore were from private sector and Rs 14,319 crore from public sector) during September 2012," Sebi noted.

This significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 7.68 lakh crore as on October 31, 2012. So far so far in current fiscal year (2012-13), overall net investment in mutual fund schemes rises to Rs 1.48 lakh crore from Rs 96,566 crore mobilised in the corresponding period last year.

PTI

Updated Date:

also read

Karnataka govt to ease lockdown in 20 districts from 14 June; essential items shops to be open till 2 pm
India

Karnataka govt to ease lockdown in 20 districts from 14 June; essential items shops to be open till 2 pm

The restrictions are going to be eased in Bengaluru Urban and 19 other districts on a 'trial basis' from 14 June to 21 June

India adds 67,208 fresh COVID-19 cases in last 24 hours; positivity rate falls but Kerala, Goa, Sikkim remain a concern
India

India adds 67,208 fresh COVID-19 cases in last 24 hours; positivity rate falls but Kerala, Goa, Sikkim remain a concern

COVID-19 India cases: The test positivity rate has remained below 5 percent for the 10th day and below 4 percent for the third day

Sensex drops over 300 points in early trade, Nifty slips below 15,700; Asian Paints gains, Tech Mahindra disappoints
Business

Sensex drops over 300 points in early trade, Nifty slips below 15,700; Asian Paints gains, Tech Mahindra disappoints

Sensex Nifty today: The 30-share BSE index was trading 302.80 points or 0.58 percent lower at 52,199.18 in initial deals and the broader NSE Nifty declined 93.70 points or 0.59 percent to 15,673.85.