Mutual Funds invest Rs 2,700 crore in stock market in August

Mutual fund managers pumped in over Rs 2,700 crore in equity markets in August after witnessing outflows in the preceding two months.

With latest inflow, total investment in stock markets have reached Rs 9,170 crore in current fiscal so far (Apr-Aug).

Industry insiders attributed latest inflow to positive investors' sentiment that was boosted after long-stalled GST Constitution Amendment Bill was passed in both houses of Parliament last month.

According to a data released by Securities and Exchange Board of India (Sebi), mutual fund managers invested a net sum of Rs 2,717 crore last month.

Prior to that, fund managers had pulled out Rs 120 crore from markets in the preceding two months (June-July).

They had infused Rs 7,149 crore in equities in May while they withdrew Rs 575 crore in April.

In 2015-16, fund managers had invested over Rs 70,000 crore in the equity markets.

"Over the last few years, we have seen a shift in investment towards equity class as investment avenues like real estate and gold are not doing well," an expert said.

A mutual fund is an investment vehicle with a pool of funds collected from various investors to buy stocks, bonds, money market instruments and similar assets.