Investors pump in Rs 54,000 cr in mutual fund schemes in FY14

Investors pumped in nearly Rs 54,000 crore in various mutual fund schemes in 2013-14, 23% lower than the amount infused by them in the preceding fiscal, the Economic Survey today said.

 

"During 2013-14, mutual funds mobilised Rs 53,782 crore from the markets as compared to Rs 76,539 crore in the preceding fiscal, a drop of 23%," said the Survey, tabled by Finance Minister Arun Jaitley in Parliament.

 

Prior to that, a net amount of over Rs 22,000 crore and over Rs 49,000 crore moved out of the mutual funds' kitty during 2011-12 and 2010-11, respectively.

 

Mutual funds pool together money from many investors and invest it on their behalf, in accordance with a stated set of objectives.

 

Of the total net investment made in the past fiscal, a huge part of inflows in the mutual fund schemes came during April 2013 and January 2014.

 

In April last year, mutual funds mobilised around Rs 1.08 lakh crore in various schemes. This was the highest net inflow by investors in such schemes in a single month since April 2011, when investors had put in a whopping Rs 1.84 lakh crore.

 

The fund houses mobilised Rs 83,533 crore in various schemes in January.

 

The significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 8.25 lakh crore at the end of March 31, 2014 from Rs 7.01 lakh crore during fiscal 2012-13, an increase of 17.6%.

 

Besides, during 2013-14, resource mobilisation through the primary market witnessed a downward movement over the previous year even as secondary market performed well.

 

"The cumulative amount mobilised through equity public issues declined by 14.2%. During 2013-14, 38 initial public offering (IPO) listed at BSE and National Stock Exchange with a mean IPO size of Rs 33 crore went down by 83.33% compared to 2012-13," it said.

 

In 2013-14, public issue of corporate debt surged in by 149%, whereas private placement fell by 23% during the same period.

 

In the past financial year, BSE's benchmark Sensex and National Stock Exchange's Nifty climbed by an impressive 19% and 18%, respectively. The sharp movement in equity market was driven by an inflow of $8.9 billion by Foreign Institutional Investors (FIIs) during the period.