Virendra Verma

Mumbai, Oct. 3

AFTER the FIIs, it seems to be the turn of mutual funds to set record in the equity market. According to SEBI data, mutual funds have made net investments of Rs 9,019 crore in the first six months of the current fiscal.

This is the highest inflow by mutual funds in a single year so far. What is more interesting is that the inflows of over Rs 9,000 crore is much more than the total investment by them in the last five years.

Inflows of mutual funds in debt market is also at a new-high of Rs 27,951 crore in the six-month period surpassing the previous high of Rs 22,700 crore in April 2003-March 2004.

Net investments of mutual funds from April 2000 to March 2005 was negative. During this period, most of the inflows were in debt funds.

Mutual funds are likely to remain flush with funds and this would lead to more investment by them in equity market, say analysts.

Even when the stock indices are at their new high, they are coming out with new schemes.

In October, four equity schemes will close. These are; Chola Tax Saver Fund, Principal Large cap Fund, Tata Contra Fund and ING Vysya Dividend Yield Fund.

(This article was published in the Business Line print edition dated October 4, 2005)
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