Rs 5.2k-cr pumped into MF equity schemes in Feb

Mutual funds (MFs) pumped in Rs 5,200 crore into equity schemes in February, taking the total inflow to about Rs 61,000 crore in the first 11 months of the current financial year, on the back of positive returns.

It was a 12th month when equity MFs witnessed an inflow.

Moreover, MFs are expected to remain upbeat about inflow into equity schemes in March, too.

According to the latest update available with Association of Mutual Funds in India (Amfi), equity funds saw net inflow of Rs 5,217 crore in February, compared with Rs 5,850 crore witnessed in the preceding month.

The latest inflow takes the total fund infusion into equity MF schemes to Rs 61,089 crore at the end of February. However, equity funds witnessed an outflow of Rs 5,526 crore a year ago.

This inflow has helped increase MF equity assets base to Rs 3.07 lakh crore in February, from Rs 1.57 lakh crore a year ago.

Industry experts said equity markets had delivered positive returns attracting retail investors into such schemes. “There has been a change in sentiment over the past few months, especially after the general election’s verdict in May. We are witnessing a trend where more and more investors are coming back into financial assets. Positive investment returns have also attracted investors into the equity segment,” said an industry expert.

Inflow in equity schemes have helped the 45 MFs to cross Rs 12-lakh crore mark in assets under management (AUM) at the end of February.

The inflow in equity funds is in line with the BSE's benchmark Sensex surging 31 per cent in the first 11 months (April-February) of the current financial year.

After witnessing an outflow in March 2014, equity MFs started the financial year on a positive note.

The inflow in such funds increased in May due to change in sentiment, supported by the outcome of general election, and the inflow continued till last month.

Experts expect this scenario would continue in the coming months as well.

MF is an investment vehicle with a pool of funds collected from investors to buy securities such as stocks, bonds, money market instruments and similar assets.