Investment by mutual funds
in domestic equities touched a staggering $12 billion in the April-September period on strong retail investor interest, even as foreign investors
trimmed their exposure.
Moreover, fund houses are upbeat over-investment in the stock markets
for the remainder of the current fiscal.
According to the latest data, fund managers
bought shares worth a net Rs 76,906 crore ($12 billion) in the first half of the ongoing financial year, while foreign portfolio investor (FPIs) pumped in just Rs 5,278 crore ($810 million) in equities during the period.
"We should draw comfort from the fact that domestic institutional investors
have been net buyers in the markets
are net sellers giving markets
stability," Himanshu Srivastava, Senior Research Analyst - Manager Research at Morningstar.
Besides, robust inflows from retail as HNIs investors
in the equity segment have helped, Anshul Saigal, portfolio manager at Kotak Mutual Fund said.
made intensive buying in last two months- August and September, when overseas investors
reduced their exposure to the Indian stocks due to several reasons including geopolitical tensions and below expectations domestic growth.
During August-September, fund managers
lapped up shares to the tune of over Rs 35,000 crore, on the other hand, FPIs
had pulled more than Rs 24,000 crore from equities.
According to Saigal, Sebi's recent move of categorising mutual fund schemes under five broad segments would help in attracting investors
to such instruments.
He said that this will provide more clarity to investors
and help in ending duplication of mutual fund schemes launched by Asset Management Companies (AMCs).