Budget 2018: Mutual funds buying in January lowest in 10 months

Fund managers are cautious ahead of the Union Budget, amid high valuations

Equity fund managers were seen slowing their pace of investment in January, ahead of the Union Budget, even as stock prices rallied sharply on the back of huge foreign flow.

Mutual funds (MFs) had made a net investment of Rs 50.03 billion till January 25, their lowest monthly tally since February last year. It was also much below the average monthly investment of Rs 120 billion for this financial year. 

Foreign investors, on the other hand, pumped in close to $2 billion (Rs 13,000 crore) into domestic stocks, thanks to improvement in global risk appetite. The huge foreign portfolio investor