Given the sluggish trends in the real estate market and continued fall in gold prices, the mutual fund houses are expecting to attract a larger share of the Indian households' savings from this year.
Mutual funds poured in Rs 5,023 crore so far in domestic equities in the New Year after pumping in Rs 70,716 crore in the entire 2015, as per the latest data.
In comparison, foreign portfolio investors (FPIs) were net sellers of equities worth Rs 9,963 crore during the same period.
The investment by mutual funds comes at a time, when the stock market crashed due to sharp slump in crude oil prices and concerns over slowdown in China. The BSE's benchmark Sensex has plunged by more than 6 per cent so far this month.
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Domestic mutual funds have made intensive buying during the period to take advantage of the lower valuations, experts said.
"Domestic mutual funds have been bullish on the stock market ever since the Narendra Modi-led BJP government came to power at the Centre in May 2014," Quantum AMC Director I V Subramaniam said.
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.