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MFs buy shares worth Rs 52,000 cr in Apr-Oct

Sell-off by overseas investors in the Indian equity markets has given an opportunity to mutual fund managers

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Press Trust of India New Delhi
Last Updated : Nov 18 2015 | 1:42 PM IST
Mutual Fund managers remained bullish on equity markets and purchased shares worth a staggering Rs 52,000 crore in the first seven months of the ongoing financial year.

This is on top of Rs 40,722 crore already invested by them in the entire 2014-15 - the first net inflow in six years for an entire fiscal after outflows, on net basis, for five consecutive financial years.

Between 2009-10 and 2013-14, MF managers had cumulatively sold shares worth over Rs 68,000 crore. They had bought shares worth Rs 6,985 crore in 2008-09.



According to the latest Sebi data, fund managers have invested a net Rs 51,977 crore in the April-October period of 2015-16, making it the 18th consecutive month when MFs invested in equities.

They have made intensive buying especially in September and August, when the domestic market crashed due to rout in Chinese equities. During that time, overseas investors have pulled out from the Indian stock markets.

The sell-off by overseas investors in the Indian equity markets has given an opportunity to mutual fund managers.

Overall, the fund managers have been bullish on the stock market ever since the Narendra Modi-led BJP government came to power at the Centre. Since then, they have made a net investment of about Rs 1 lakh crore in the equity market.

In addition, robust inflows from retail investors in the equity segment have helped. Till April last year, holdings were facing liquidation due to redemptions from investors.

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.

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First Published: Nov 18 2015 | 1:32 PM IST

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