Mutual funds garner Rs 1.5 trillion in May, highest in 3 years
Jun 08 2014 , New Delhi
Investors had poured in Rs 1.09 lakh crore in April.
Industry experts attribute the rise in inflows to improved market sentiment over the past two months and steps by the Securities & Exchange Board of India, the capital market regulator, to make the mutual fund sector more attractive.
According to industry experts, inflows into mutual funds may increase in the months ahead. Mutual funds pool money raised from the public and invest it on their behalf in accordance with a stated set of objectives.
At the gross level, mutual funds mobilised over Rs 17.06 lakh crore in May, while redemptions amounted to Rs 15.6 lakh crore during the month.
The net inflows in May climbed to Rs 1,46,095 crore, the highest level in a single month since April 2011, when investors had put in Rs 1.84 lakh crore, as per Sebi data.
Total assets under the management of mutual funds have grown to a record Rs 10.11 lakh crore as of May 31.
Sebi recently cleared the first long-term policy for the sector, proposing a number of tax benefits and measures for the growth of the mutual fund business. The policy is aimed at channelising household savings into equities and mutual funds.
In 2013-14, mutual funds had garnered almost Rs 54,000 crore from investors against Rs 76,539 crore in the preceding financial year.