Insurers stay on sidelines as Mutual Funds step up purchase of shares

Insurers bought shares worth Rs 42,000 cr in 2019, while MFs spent Rs 53,000 cr

Domestic insurers have largely remained on the sidelines even as mutual funds (MFs) stepped up their purchase of shares in the past few years.

In 2019, mutual funds shopped for equities worth about Rs 53,000 crore, while domestic institutional investors (DIIs) bought shares worth Rs 42,000 crore, implying net selling by insurance companies. A similar trend has played out in the past eight years. MFs, on the other hand, have significantly ramped up their buying since 2015 driven by the surge in flows through systematic investment plans (SIPs), ploughing in Rs 4.1 trillion.  

"Within the industry, there is increased focus