MFs invest Rs 6 trillion in debt markets in 2014

Industry experts attributed the inflows in debt to the new govt's reforms agenda, improved fundamentals of the domestic economy and high interest rates

Mutual funds pumped in more than Rs 6 trillion in the debt markets in 2014, an increase of 28% from the preceding year, primarily on account of improved sentiment.

Besides, MFs invested a net amount of Rs 23,500 crore in equity markets last year.

Moreover, mutual fund houses are upbeat about overall inflows in equities and debt markets for this year as well.

Industry experts attributed the inflows during the 2014 in debt to the new government's reforms agenda, improved fundamentals of the domestic economy and high interest rates.

As per data released by the capital markets regulator, Securities and Exchange Board of India (Sebi), mutual fund invested a net sum of Rs 6.2 trillion in 2014, higher than Rs 4.85 trillion pumped in the preceding year.

"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 both equity as well as debt funds," 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.