Mutual Funds buy shares worth Rs 6.5K-crore in November; total Rs 58K crore in FY16

New Delhi: Mutual Fund managers have picked up shares worth Rs 6,500 crore in November, taking the total to a staggering more than Rs 58,000 crore in the current fiscal.

This is on top of Rs 40,722 crore already invested by them in the entire 2014-15 - the first net inflow in six years for an entire fiscal after outflows, on net basis, for five consecutive financial years.

Between 2009-10 and 2013-14, mutual fund (MF) managers had cumulatively sold shares worth over Rs 68,000 crore. They had bought shares worth Rs 6,985 crore in 2008-09.

According to the latest Sebi data, fund managers have picked up shares to the tune of Rs 6,548 crore in November, higher than Rs 2,935 crore invested in the preceding month.

This has taken the total investment in stock markets to Rs 58,525 crore in the April-November period of 2015-16.

They have made intensive buying especially in September and August, when the domestic market crashed due to rout in Chinese equities. During that time, overseas investors have pulled out from the Indian stock markets.

The sell-off by overseas investors in the Indian equity markets has given an opportunity to mutual fund managers.

Overall, the fund managers have been bullish on the stock market ever since the Narendra Modi-led BJP government came to power at the Centre. Since then, they have made a net investment of about Rs 1 lakh crore in the equity market.

In addition, robust inflows from retail investors in the equity segment have helped.

Till April last year, holdings were facing liquidation due to redemptions from investors.

Mutual funds are investment vehicles that pool funds collected from investors to invest in securities such as stocks, bonds, money market instruments and other assets.