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Mutual fund managers have pumped nearly Rs 6 lakh crore in to the debt market in FY15, an increase of eight per cent from the preceding year, primarily on account of improved business sentiments.
Fund managers have also invested a net amount of Rs 40,000 crore in equity markets during the past financial year. Mutual fund houses are upbeat about overall inflows in equities and debt markets for FY16 as well.
Experts have attributed the inflows in debt markets, during 2014-15, to the new government’s reforms agenda, improved fundamentals of the domestic economy and increased participation from retail investors.
However, the Association of Mutual Funds of India’s decision to put one per cent cap on upfront commission paid to distributors may impact the sector, they added.
According to data released by the Securities and Exchange Board of India, mutual fund managers invested a net Rs 5.87 lakh crore in 2014-15, higher than Rs 5.43 lakh crore in the preceding year.
This inflow has helped the mutual fund industry to reach a Rs 12-lakh-crore mark in assets under management at the end of the financial year.
In comparison, foreign institutional investors made a net investment of Rs 1.64 lakh crore into debt markets during the period under review.
A mutual fund is an investment vehicle with a pool of funds collected from investors to buy securities such as stocks, bonds, money market instruments and similar assets.
