MF equity asset base paces up, shy of Rs 4 lakh cr

Analysts say equity markets have delivered positive returns, a big reason why retail investors went for such schemes

The asset base of equity mutual funds raced to nearly Rs 4 lakh crore at the end of July, up 56% from the year-ago level, on the back of retail investors pouring money into these schemes.

The industry's equity assets under management (AUM) grew to Rs 3.94 lakh crore in July this year, according to the Association of Mutual Funds in India (AMFI).

Analysts said equity markets have delivered positive returns, a big reason why retail investors went for such schemes.

"There has been a change in investor sentiment over the the last one year, especially after the general election verdict in May 2014.

"We are witnessing a trend where more and more investors are coming back into financial assets. Positive investment returns have also attracted investors into equity segment," said an industry expert.

Furthermore, in the last one year, equity schemes have witnessed a funds infusion of over Rs 1 lakh crore.

Inflow in equity schemes has helped the 44 mutual funds cross record Rs 13 lakh crore-mark in AUM at July end.

Meanwhile, the benchmark BSE Sensex has surged 8.6% during the period under review.

Besides, many investors are running away from poor performers, including gold.

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.