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Mutual fund equity buying tops Rs 1 trillion for 2024, shows data

The elevated equity market deployment in April indicates sustained inflows into equity schemes despite volatility

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Abhishek Kumar

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Mutual funds (MFs) continued to lap up domestic equities in April even as foreign portfolio investors (FPIs) turned net sellers to the tune of Rs 6,800 crore worth of equities, according to data from the Securities and Exchange Board of India.

MFs deployed a net of Rs 32,824 crore last month, the second-highest monthly buying in a calendar month. The highest MF buying was recorded in March 2024 as they deployed a net of Rs 44,233 crore.

On the back of sustained buying, MFs' equity deployment in calendar year (CY) 2024 topped Rs 1 trillion in April. The total deployment for CY 2023 stood at over Rs 1.7 trillion.
The elevated equity market deployment in April indicates sustained inflows into equity schemes despite volatility.

The key benchmark indices — the Nifty and the Sensex — had registered a decline for four consecutive days ending April 18 before staging a recovery. 

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Despite the two indices falling nearly 3.4 per cent during the four days, they ended the month up around 1.2 per cent.

MF inflow data from the Association of Mutual Funds in India shows that the record buying in March was a result of robust inflows in active equity schemes and exchange-traded funds (ETFs). Investors poured in a net of Rs 22,633 crore into active equity schemes. ETFs recorded an inflow of Rs 10,560 crore.

Over the past 1 year, FPIs have pumped in Rs 1.81 trillion, while MFs have invested another Rs 2.4 trillion into domestic stocks, underpinning the gains seen across the board.

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First Published: May 07 2024 | 9:18 PM IST

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