Mutual Funds garner over Rs 1 lakh cr from investors in April
Investors pumped in more than Rs 1 lakh crore in various mutual fund schemes during April, the highest in two years.
New Delhi: Investors pumped in more than Rs 1 lakh crore in various mutual fund schemes during April, the highest in two years.
The funds mobilisation in April comes after a net outflow of Rs 1.08 lakh crore in the preceding month.
As per the latest data available with market regulator Securities and Exchange Board of India (SEBI), there was a net inflow of Rs 1.06 lakh crore during April as against a net outflow of Rs 1.08 lakh crore in March.
This was the highest net inflow by investors in mutual fund (MF) schemes in a single month since April 2011, when investors had put in Rs 1.84 lakh crore. In April 2012, net funds mobilisation in mutual fund schemes stood at Rs 92,746 crore.
Mutual Funds houses pool together money from investors and invest it on behalf of the group, in accordance with a stated set of objectives.
Market participants believes that buoyant stock market and a slew of reform measures taken by the government as well as Sebi have helped bring in large resources into the mutual fund industry.
At gross level, mutual funds mobilised Rs 6.78 lakh crore in April, while there was redemption worth Rs 5.72 lakh crore as well during the period. This resulted in a net inflow of 1.06 lakh crore.
This significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 8.25 lakh crore as on April 30, 2013.
The strong inflow in mutual fund schemes coincided with a sharp increase in BSE's benchmark Sensex by 3.5 percent in April.
During the financial year 2012-13, mutual funds had garnered Rs 76,539 crore from investors while a net amount of over Rs 22,000 crore moved out of the mutual funds' kitty during the period.