New Delhi: Mutual fund managers have pumped in more than Rs 6,500 crore into equities in the first two months of the current fiscal year amid sustained volatility in the stock markets.
This comes on the top of more than Rs 64,000 crore invested in the entire past fiscal year.
Growing participation from retail investors, especially from small towns, and several measures taken by market regulator Sebi (Securities and Exchange Board of India) 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, resulting into a net inflow of Rs 6,573 crore, data with the market regulator showed.
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," Quantum AMC director I V Subramaniam said.
Meanwhile, the 30-share benchmark index Sensex has risen over five per cent in the first two months (April-May) of the ongoing financial year.
MFs are investment vehicles made up of a pool of funds collected from a large number of investors and invest in stocks, bonds and money market instruments, among others.
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