New Delhi: Equity mutual funds witnessed an inflow of Rs 9,079 crore in November mainly on account of optimistic investor sentiment.
This also marks the eighth straight month of positive inflow in equity schemes. Prior to that, such funds had witnessed a pull out of Rs 1,370 crore in March.
Market experts attributed the inflow to positive climate and optimistic environment in both equity and debt markets. Besides, slew of factors contributing to this buoyancy are better corporate results and smooth progress on GST Bill.
Also, monthly net contributions through SIP (systematic investment plans) led to higher positive net inflows in equity markets, they added.
SIP is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.
According to the data from Association of Mutual Funds in India (Amfi), equity funds, which also include equity- linked saving schemes (ELSS), saw net inflow of Rs 9,079 crore last month.
In comparison, equity funds had seen net inflow of Rs 9,394 crore in October, which was the highest in 16 months.
With the latest inflow, total mobilisation in equity schemes has reached Rs 40,706 crore in the current financial year (April-November).
The robust inflow has pushed the assets under management (AUM) of equity mutual fund to Rs 4.68 lakh crore as of November-end.
Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others.