MFs garner Rs 1.5t in May, highest in three years

NEW DELHI, June 8 (PTI): Investors pumped in a net Rs 1.5 trillion in various Indian mutual fund schemes in May, the highest amount in more than three years.

Investors had poured in Rs 1.09 trillion in April.

Industry experts attribute the rise in inflows to improved market sentiment over the past two months and steps by the Securities & Exchange Board of India (Sebi), the capital market regulator, to make the mutual fund sector more attractive.

According to industry experts, inflows into mutual funds (MFs) may increase in the months ahead. Mutual funds pool money raised from the public and invest it on their behalf in accordance with a stated set of objectives.

At the gross level, mutual funds mobilised over Rs 17.06 trillion in May, while redemptions amounted to Rs 15.6 trillion during the month.

The net inflows in May climbed to Rs 1460.95 billion, the highest level in a single month since April 2011, when investors had put in Rs 1.84 trillion, as per Sebi data.

Total assets under the management of mutual funds have grown to a record Rs 10.11 trillion as of May 31.

Sebi recently cleared the first long-term policy for the sector, proposing a number of tax benefits and measures for the growth of the mutual fund business. The policy is aimed at channelising household savings into equities and mutual funds.

In 2013-14, mutual funds had garnered almost Rs 540 billion from investors against Rs 765.39 billion in the preceding financial year.