Mutual funds invest Rs 13,500 cr in equities in Jan-Sep 2016

Mutual Funds have invested over Rs 13,500 crore in equity markets in the first nine months of the year due to strong participation from retail investors.

This is on top of over Rs 70,000 crore already invested in the entire 2015 and around Rs 24,000 crore in 2014.

"Over the last few years, we have seen a shift in investment towards equity class as investment avenues like real estate and gold are not doing well," Bajaj Capital Group CEO and Director Anil Chopra said.

Besides, equity mutual funds folio reached 3.7 crore by the end of August, as per the latest data available.

Market experts attributed the inflow to investment in systematic investment plans (SIPs) and strong participation from retail investors.

SIP is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.

As per the data released by the Securities and Exchange Board of India (Sebi), mutual fund managers invested a net sum of Rs 13,565 crore during January-September period of 2016.

In addition, fund managers have infused over Rs 3 lakh crore in the debt markets during the period under review.

The inflow is in line with BSE's benchmark Sensex rising 1,748 points or 6.7 per cent during the period under review.

A mutual fund is an investment vehicle with a pool of funds collected from various investors to buy stocks, bonds, money market instruments and similar assets.