Mutual Funds emerging as strong counterbalance to FPIs: Sebi

MFs infused Rs 75,000 cr in equity markets during first 11 months of fiscal, even as FPIs pulled out Rs 27,000 cr

Mutual funds are emerging as a new and very strong counterbalance to foreign portfolio investors (FPIs) as they infused Rs 75,000 crore in the equity markets during the first 11 months of the fiscal, Sebi said today.

During April-February in the previous fiscal, mutual Funds (MF) had invested around Rs 72,000 crore in the equities.

However, FPIs have pulled out more than Rs 27,000 crore from the stock markets in the first eleven months of the current fiscal.

"Mutual Funds are emerging as a new and a very strong counterbalance for FPIs in the Indian markets," Sebi Chairman U K Sinha told reporters here.

He further said participation from the MF industry has increased especially from B-15 (beyond top-15 cities).

Meanwhile, Finance Minister Arun Jaitley, who addressed the board of Sebi today, also appreciated the emergence of Indian Mutual Funds as a counter balance to FPIs.

Domestic mutual funds have been bullish on the stock market ever since the Narendra Modi-led BJP government came to power at the Centre in May 2014.

Retail participation have been providing the much needed liquidity to the stock markets that have been largely driven by FPIs for the past few years.

Mutual funds are investment vehicles that pool funds collected from investors to invest in securities such as stocks, bonds, money market instruments and other assets.