Mutual fund units have invested Rs 5,526 crore in shares in the month of April. This is the second consecutive month when they have invested in stocks after seeing some improvement in the market.
New Delhi: Mutual fund units have invested Rs 5,526 crore in shares in April. This is the second consecutive month when they have invested in stocks after seeing some improvement in the market. Kaushlendra Singh Sengar, founder and CEO of Invest 19, said that many financial technology companies are coming into the field. This has increased the number of users. In such a situation, the investment of mutual funds will increase in the coming months.
Investors investing in stocks for higher returns are investing in stocks in the hope of higher returns. According to data from the Securities and Exchange Board of India (SEBI), the mutual fund invested a net Rs 5,526 crore in the month of April. This is more than the investment of Rs 4,773 crore made in March. This is the first investment in the last 10 months by a mutual fund . This is the first such investment in ten months. According to the data available with SEBI, before this investment, mutual funds were withdrawing from the stock market from June 2020.
Alok Agarwal, Chief Research Officer, Bajaj Capital, also said that the trend will continue as the valuation has come down after the financial results of FY 2020-21 and the improvement in prices is giving investors an opportunity to invest in the stock markets. He said that apart from this softening of yields on bonds since March, this trend is also gaining momentum.
“We saw a 15.8 percent increase in investment in mutual fund shares last month,” Sanger said. Given the fluctuations in the stock market, investors resorted to equity mutual funds to mitigate the risk. ”
Alok Agarwal, chief research officer, Bajaj Capital, said mutual fund flows would normally involve investors investing in related mutual fund schemes. Reflects Domestic investors were withdrawing money from equity mutual fund schemes from July 2020. March this year was the first month when the situation changed.
In March, SIP (ie SIP) investment of fixed amount increased to Rs 9,182 crore every month, which was Rs 7,528 crore in the previous month. That is why shares of mutual funds saw more investment in the month of March. He said that although the figures have not yet come, the net inflows into equity mutual fund schemes continue in April as well. The result of this is that the equity investment of mutual funds has increased.
Gautam Kalia, Head of Investment Solutions, Sharekhan Bai BNP Paribas, said, “Covid-19 infection cases have increased in April. This led to some improvement in the market, but quickly improved quickly. Mutual fund units used this decline in April to increase equity investment. ”
