)
When the stock markets kept continuously falling on Monday, a number of savvy investors put in money into equity mutual funds schemes. According to industry sources, investors pumped in as much as Rs 1,500 crore on Monday, which is a record.
“Usually, mutual fund houses receive Rs 300-400 crore a day into equity schemes. Yesterday (Monday), there was a lot of interest among investors because the fall wasn’t anticipated and many believed this downfall might not continue for too long,” said the CEO of a top fund house.
According to industry players, while investors were shocked when the markets opened down but as the day went on and there was no sign of recovery, high networth individuals started getting convinced that it could be a good time to enter the market. “There were panic calls in the morning but by afternoon, many were willing to put in more money as an opportunity,” said another distributor.
On Monday, the Sensex fell over 1,600 points – its sharpest absolute fall ever. The fall was so sharp that as much as Rs 7 lakh crore of market capitalisation was wiped off. According to figures from the BSE, foreign institutional investors (FIIs) sold shares worth Rs 5,000 crore whereas domestic investors (bought shares worth Rs 4,100 crore. Since April, FIIs have selling consistently. However, strong inflows into mutual fund schemes have ensured they hold on to the market.
“Usually, mutual fund houses receive Rs 300-400 crore a day into equity schemes. Yesterday (Monday), there was a lot of interest among investors because the fall wasn’t anticipated and many believed this downfall might not continue for too long,” said the CEO of a top fund house.
According to industry players, while investors were shocked when the markets opened down but as the day went on and there was no sign of recovery, high networth individuals started getting convinced that it could be a good time to enter the market. “There were panic calls in the morning but by afternoon, many were willing to put in more money as an opportunity,” said another distributor.
On Monday, the Sensex fell over 1,600 points – its sharpest absolute fall ever. The fall was so sharp that as much as Rs 7 lakh crore of market capitalisation was wiped off. According to figures from the BSE, foreign institutional investors (FIIs) sold shares worth Rs 5,000 crore whereas domestic investors (bought shares worth Rs 4,100 crore. Since April, FIIs have selling consistently. However, strong inflows into mutual fund schemes have ensured they hold on to the market.
