Equity mutual funds see inflow of Rs 56,000 cr

January was the 11th consecutive month when equity mutual funds witnessed an inflow

Mutual funds pumped in a whopping Rs 5,850 crore in equity schemes in January taking the total inflow to nearly Rs 56,000 crore in the first 10 months of the current financial year on account of positive returns and improved investor sentiment.

This was the 11th consecutive month, when equity mutual funds witnessed an inflow.

Moreover, mutual fund houses are upbeat about inflow into equity schemes for the remaining part of the current fiscal, ending on March 31.

According to the latest update available with Association of Mutual Funds in India (AMFI), equity funds saw net inflow of Rs 5,850 crore in January as compared to Rs 6,057 crore witnessed in the preceding month.

The latest inflow takes the total fund infusion in equity MF schemes to Rs 55,872 crore at the end of January 31.

Industry officials 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," said an industry official.

This inflow has helped the mutual fund industry to reach nearly Rs 12 lakh crore mark in assets under management (AUM) at the end of January.

The inflow in equity funds is in line with the BSE's benchmark Sensex surging by 30 per cent in the first 10 month of the current financial year.

After witnessing an outflow in March, equity mutual fund started the financial year on a positive note and inflow in such funds increased in May due to change in sentiment supported by the general election's verdict and the inflow continued till January.

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.