Mutual Funds invest Rs 23,000 crore in debt market in September

Mutual funds invested a whopping over Rs 23,000 crore in the bond market in September, taking the total investment to close to Rs 5 lakh crore since the beginning of the year.

In comparison, foreign investors made a net inflow of a staggering near Rs 1.19 lakh crore so far in 2014.

As per the latest data compiled by the Securities and Exchange Board of India (Sebi), the net investment by mutual funds (MFs) in the debt market during September stood at Rs 23,416 crore.

This takes the total investment by MFs into the bond market to Rs 4,89,467 crore so far in 2014. In 2013, mutual funds had invested a net of Rs 5.12 lakh crore in the bond market.

Industry experts attributed the inflows in debt to the new government's reforms agenda, improved fundamentals of the domestic economy and high interest rates.

Mutual funds collect money from investors and buy stocks, including IPOs (primary market) and bonds.

Moreover, MFs picked up shares to the tune of around Rs 4,200 crore in the equity market in September, making it the fifth consecutive monthly inflow.

MFs have turned net buyers of equities since May 2014.

Prior to that, fund houses had been net sellers in the equity market since September, 2013, while they were net buyers of shares to the tune of Rs 1,607 crore in August 2013.

The latest inflows takes the total net investment by MFs in stocks to Rs 8,000 crore so far this year.