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Mutual funds pump $12 bn into equities in first six months of FY18

MFs outshine FPIs' investments at $810 million during the April-September period

Press Trust of India  |  New Delhi 

Mutual funds

Investment by in domestic equities touched a staggering $12 billion in the April-September period on strong retail investor interest, even as foreign trimmed their exposure.

Moreover, fund houses are upbeat over-investment in the stock for the remainder of the current fiscal.

According to the latest data, 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 have been net buyers in the when are net sellers giving stability," Himanshu Srivastava, Senior Research Analyst - Manager Research at Morningstar.

He said that Indian are warming up to in equity as an asset class.

Besides, robust inflows from retail as 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 reduced their exposure to the Indian stocks due to several reasons including geopolitical tensions and below expectations domestic growth.

The sell-off by overseas in the Indian equity has meant an opportunity to

During August-September, lapped up shares to the tune of over Rs 35,000 crore, on the other hand, 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 to such instruments.

He said that this will provide more clarity to and help in ending duplication of mutual fund schemes launched by Asset Management Companies (AMCs).

collect money from and buy stocks, including (primary market) and bonds. 

First Published: Sun, October 22 2017. 14:44 IST
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