 "Fund managers' stock buying hits 6-year high")
Though the sum was nowhere close to the big-ticket monthly purchases seen during the 2004-2008 bull run, it is significant, as it confirms the reversal of a selling spree that began in September 2013. Last month, net buying by MFs stood at a marginal Rs 105 crore.
Till May, most investments were made by large investors, primarily high net worth individuals. Sources said retail money, too, had started coming in.
"Investors are more hopeful than earlier and this is reflected in their choice of investment. The number of transactions has increased twofold, favouring equities. It's a turning point and the trend should continue," said Kalpen Parekh, chief executive of IDFC Mutual Fund.
During 2009-10, fund managers sold stocks worth a whopping Rs 75,000 crore, as investors kept redeeming investments. However, the tide appears to be turning for the industry. "Gross sales are on the rise, which is a big positive," said Supreet Bhan, executive director and head (retail sales), JP Morgan Mutual Fund (India). He added though there were redemptions, these weren't as high as earlier.
"Enquiries from retail investors have substantially increased. Though these haven't yet translated into actual investments, the sentiment has improved a lot," said the national sales head of a large fund house.
A Balasubramanian, chief executive, Birla Sun Life AMC, said, "With the improved sentiment towards our country and the mutual fund sector, I am bullish on investor participation in MF equity schemes."
Most equity fund managers are deployed with cash levels as low as a percentage point of the equity assets under management.