Equity MFs see over Rs 39,000 crore inflow in first seven months of FY15

Buoyant stock markets helped attract over Rs 39,000 crore in equity mutual fund schemes in the first seven months of current fiscal (2014-15).

In the April-October period of 2013-14, such schemes had seen a net outflow of over Rs 8,500 crore.

As per the latest data available with the Association of Mutual Funds in India (AMFI), investors have pumped in a net amount of Rs 39,217 crore in equity-oriented MF schemes in the April-October period of 2014-15.

This trend is expected to continue in the coming months, industry experts said, adding there has been positive sentiment towards equity MFs and equity-linked savings schemes ever since the NDA government came to power at the Centre in May.

"Equity schemes continued to attract capital in the past few months due to the continuing rally in equity markets," an analyst said.

These funds have added more than seven lakh investor accounts or folios in the first seven months of the current fiscal in view of sharp rise in the stock market.

The strong inflow in MF schemes coincided with the rise in Bombay Stock Exchange's (BSE) benchmark index, Sensex, that spurted by around 25 per cent during the period under review.

With the stock market hitting new all-time highs, it has become easier for MFs to attract investors, citing impressive returns from equity schemes which are currently higher than that of bank fixed deposits.

Mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

The surge in inflows and improved valuations have taken the total assets under management (AUM) for the 45 fund houses to nearly Rs 11 lakh crore.