
Mutual fund houses continued to be bullish on equity markets in 2015 and purchased shares worth a staggering over Rs 70,000 crore, primarily on account of strong participation from retail investors. This is on top of Rs 23,843 crore already being infused in the entire 2014. In comparison, foreign portfolio investors (FPIs) made a net investment of just Rs 16,674 crore during the period.
However, in the last three years, foreign funds have made an average investment of $20 billion (around Rs 1 lakh crore) each in the Indian stock markets. According to the latest Sebi data, domestic mutual fund (MF) managers have invested a net Rs 70,173 crore in the equity markets in 2015. The inflows could be much higher for this year as four trading sessions are still left. "As domestic investors continued to invest in equities through MFs, 2015 turned out to be a stellar year for the industry with impressive inflow in the segment," UTI Mutual Fund EVP and Fund Manager V Srivatsa said.
Equity MFs, including equity-linked saving schemes, have seen a net inflow of nearly Rs 87,000 crore till Nov this year. In addition, robust inflows from retail investors in the equity segment have also helped. As per the industry body Amfi, 4-7 lakh retail folios are being added to the industry every month.
"Despite equities market not doing well throughout 2015, we have seen the inflows happening in the equity segment and through the retail segment", Quantum AMC MD and CIO I V Subramaniam said. Till April last year, holdings were facing liquidation due to redemption from investors and the money started pouring in from May 2014 and the momentum continued till this month.
They have made intensive buying especially in Aug and Sept 2015, when the domestic market crashed due to rout in Chinese equities. During that time, overseas investors pulled out from the Indian stock markets. The sell-off by overseas investors in the Indian equity markets has given an opportunity to mutual fund managers.