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Mutual funds invest over Rs 2,000 cr in stocks in Feb

Mutual Fund

New Delhi: Mutual fund managers purchased stocks worth a little over Rs 2,000 crore in February - making it the seventh straight month of positive inflow in equities- on sustained participation by retail investors.

Fund managers have been investing aggressively in money in the stock market since August 2016 due to a sharp plunge in equities and pumped in Rs 46,000 crore 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 Vidya Bala said.

"In other words, retail investors have reposed faith (in stock markets). Traditionally, domestic investors have been net buyers when FPIs have sold and the same phenomenon is playing out now," she added.

According to the data released by the Securities and Exchange Board of India (Sebi), mutual fund managers invested a net sum of Rs 2,040 crore last month.

It followed an inflow of Rs 5,234 crore in January, Rs 9,179 crore in December, Rs 13,775 crore in November, Rs 9,129 crore in October, Rs 3,841 crore in September and Rs 2,717 crore in August. Prior to that, fund managers had pulled out Rs 34 crore from the stock markets in July.

Apart from equities, fund managers invested Rs 38,830 crore in the debt markets last month. 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.


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