Mutual funds invest over Rs 2,400 cr in stocks in May

New Delhi: After withdrawing capital from equities in April, mutual funds put in over Rs 2,400 crore in stocks last month, primarily due to robust GDP growth, controlled inflation levels, and balanced liquidity in the economy.

Going ahead, stronger inflows from the mutual fund space in equities are expected on positive macro numbers and the current fair value of Nifty, Feroze Azeez, Deputy CEO of Anand Rathi Wealth, said.

“Stable GDP growth, low inflation, investor-friendly policies, and global market sentiments towards emerging economies play a significant role in attracting investments from both mutual funds and foreign portfolio investors (FPIs),” Akhil Chaturvedi, Chief Business Officer at Motilal Oswal AMC, said.

According to the data available from the Securities and Exchange Board of India (Sebi), mutual funds infused a net sum of Rs 2,446 crore in equities as compared to a net withdrawal of Rs 4,533 crore in April.

However, there is a disparity in May’s investments between mutual funds and FPIs, with mutual funds showing lower investments than the substantial Rs 43,838 crore invested by FPIs. Even in April, foreign investors infused

Rs 11,631 crore.