MFs pump Rs 7,200-cr in stock markets in April-June
This comes on the top of more than Rs 64,000 crore invested in the entire past fiscal. Growing participation from retail investors, especially from small towns, and several measures taken by markets regulator Sebi led to robust inflows in equities, industry experts said.
The regulator has given extra incentives for those expanding into smaller cities. Equities witnessed a net outflow of Rs 575 crore in April, while a net inflow of Rs 7,149 crore was seen in May and again a net inflow of Rs 634 crore was witnessed this month (till June 23) taking the total to Rs 6,208 crore, according to latest data with Sebi.
Smaller towns have contributed more than 40 per cent of inflows in equity schemes. Domestic mutual funds have been bullish on the equities ever since the Narendra Modi-led BJP government came to power at the Centre in May 2014, an expert said. Meanwhile, the 30-share benchmark index Sensex has risen over four per cent in the ongoing financial year (2016-17)so far.