MF inflows in equity markets drop by 58% to Rs 4,300 crore in July

Mutual fund managers have pumped in a little over Rs 4,300 crore in the equity markets in July, a slump of 58 <g data-gr-id="18">per cent</g> from the preceding month, primarily on account of subdued corporate earnings and higher valuation. In comparison, <g data-gr-id="26">mutual</g> fund reported a net inflow of nearly Rs 31,000 crore in the debt markets last month. Industry insiders analysts attributed the decline in equity investments to <g data-gr-id="23">higher</g> valuation, subdued corporate earnings and Greek crisis. However, they remain optimistic about the equities in the long run. As per a data released by the Securities and Exchange Board of India (Sebi), mutual fund managers invested a net sum of Rs 4,339 crore last month, as compared to Rs 10,325 pumped in June. This is for the 15th month in a row, mutual funds have invested in equities. Mutual funds have been witnessing net inflow in stock markets since May last year on account of expectation of reforms and favourable macroeconomic data. Since <g data-gr-id="19">May 2014, t</g>hey have made a net investment of more than Rs 70,000 crore in Indian equities. Prior to that, fund houses were net sellers in April last year and pulled out Rs 2,700 crore.