Mutual Funds garner Rs 37,000 cr from investors

Investors pumped in more than Rs 37,000 crore (Rs 370 billion) in various mutual fund schemes in May taking the total funds mobilisation during the first two months of the current fiscal to Rs 1.44 lakh crore.

The funds mobilisation in May comes after net inflow of Rs 1.06 lakh crore in the preceding month. As per the latest data available with market regulator Securities and Exchange Board of India (Sebi), there was a net inflow of Rs 37,435 crore (Rs 374. 35 billion) during May as against Rs 1.06 lakh crore infused in April.

The April's figure was the highest net inflow by investors in mutual fund (MF) schemes in a single month since April 2011, when investors had put in Rs 1.84 lakh crore.

With the latest inflow, the net mobilisation by investors in various mutual fund schemes during the current fiscal (April-May) reached Rs 1.44 lakh crore.

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.

At gross level, mutual funds mobilised Rs 7.03 lakh crore in May, while there was redemption worth Rs 6.65 lakh crore as well during the period. This resulted in a net inflow of Rs 37,435 crore.

The fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 8.68 lakh crore as on May 31, 2013. The BSE's benchmark Sensex had surged 256 points, or 1.31 per cent, in May.

"During the financial year 2013-14, mutual funds mobilised a net of Rs 1,44,009 crore (in the first two months) as compared to a net of Rs 1,19,487 crore (Rs 1.19 trillion) mobilised during the same period of 2012-13," the Sebi noted.

In the entire fiscal 2012-13, mutual funds had garnered Rs 76,539 crore from investors while a net amount of over Rs 22,000 crore (Rs 220 billion) moved out of the mutual funds' kitty during the period.