Equity mutual funds see inflow of Rs 49,000 crore in 2014

Mutual funds pumped in a whopping Rs 49,000 crore in equity schemes in 2014 after witnessing an outflow in the preceding year on account of improved sentiment and positive returns.

The inflow comes after witnessing an outflow of about Rs 8,700 crore in 2013.

Moreover, mutual fund houses are upbeat about inflow in equity schemes for this year as well.

According to the latest update available with Association of Mutual Funds in India (AMFI), equity funds saw net inflow of Rs 49,000 crore in 2014 as against an outflow of Rs 8,700 crore in the preceding year.

Interestingly, the bulk of the inflow in equity fund in 2014 came in the second half of the year.

Industry insiders said equity markets have delivered positive returns and that has attracted retail investors into such schemes.

"There has been 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 also attracted investors into equity segment," an industry expert said.

This inflow has helped the mutual fund industry to cross Rs 11 lakh crore mark in assets under management (AUM) at the end of the year.

Mutual fund 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.