Mutual funds (MFs) bought shares worth over Rs 23,000 crore for the second month in a row in January, thanks to strong inflows into equity funds. With this, their stake has reached the Rs 1 trillion mark in the last five months.
According to experts, the purchase of MF in January proved to be a strong support for the market. Benchmark indices ended the month almost flat even as foreign investors withdrew Rs 26,100 crore. Meanwhile, the broader small and mid-cap indices rose more than 5 percent on domestic liquidity support.
The deployment of MF in equity funds is linked to the inflow of investors into equity and hybrid funds. In the last two months, equity schemes have received a net Rs 38,800 crore.
With inflows into equity MF schemes remaining positive over the past 35 months, domestic MFs have emerged as a mainstay for the stock market. Net implementation has crossed Rs 1.7 trillion in the last two calendar years.
First print: February 8, 2024 | 11:19 PM IST