Investors have put in more than Rs 1.5 lakh crore in various mutual funds schemes in the ongoing financial year, nearly twice the amount pumped in by them in entire 2012-13 fiscal.
As per the latest data available with Securities and Exchange Board of India (Sebi), there was a net inflow of Rs 1,50,675 crore during the 2013-14 fiscal (April-November) as against a net inflow of over Rs 76,000 in the preceding fiscal.
Prior to that, a net amount of more than Rs 22,000 crore and over Rs 49,000 crore moved out of the mutual funds' kitty during 2011-12 and 2010-11, respectively.
Mutual funds pool together money from many investors and invest it on their behalf, in accordance with a stated set of objectives.
At a gross level, mutual funds mobilised over Rs 63 lakh crore during April-November period of this year, while there were redemptions worth Rs 61.5 lakh crore as well. This resulted in a net inflow of Rs 1,50,675 crore.
According to industry experts, mutual fund investors have put in most of their money in debt schemes during April and May on the anticipation of interest rate cuts by the Reserve Bank of India (RBI).
"As prospects of faster interest rate cuts by the RBI spurred investors into buying debt schemes. They expected that investment into debt funds will give good return," Debashish Mallick, MD and CEO at IDBI MF said.
He further said that most of the inflows were into short- term debt schemes and liquid funds.
Of the total net investment made in the first eight months of 2013-14, the huge part of inflows in the mutual fund schemes came during April and May. Investors have infused a net amount of Rs 1.44 lakh crore during the period.
In April, mutual funds mobilised around Rs 1.08 lakh crore in various schemes. This was the highest net inflow by investors in such schemes in a single month since April 2011, when investors had put in a whopping Rs 1.84 lakh crore.
The significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 8.9 lakh crore at the end of November 30 this year from Rs 7.01 lakh crore as on March 31, 2013.