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Mutual Funds Park Rs 2,700 Crore In Stocks So Far In January

Besides, fund managers have pumped in Rs 23,861 crore in the debt market during the period under review.
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Mutual Funds Park Rs 2,700 Crore In Stocks So Far In January
New Delhi: Mutual funds invested nearly Rs 2,700 crore in equities this month so far on sustained participation by retail investors.

Besides, fund managers have pumped in Rs 23,861 crore in the debt market during the period under review.

According to the data released by the Securities and Exchange Board of India (Sebi), mutual fund managers invested a net sum of Rs 2,670 crore this month (till January 18).

Fund managers have been putting in money in the stock market since August last year due to a sharp plunge in equities. They had pumped in over Rs 37,000 crore in stock markets during the period.

Generally, fund managers step up their buying trend whenever equity markets undergo a sharp correction.

"Such inflows are possible only when retail investors have participated in large numbers by investing in equity funds, viewing the weakness as opportunity," Head of Mutual Fund Research FundsIndia.com Vidya Bala said.

"In other words, retail investors have reposed faith. Traditionally too, domestic investors have been net buyers when FPIs have sold and the same phenomenon is playing out now."

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.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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