Mutual funds attract Rs 24,000 cr in August

PTI Updated - October 02, 2013 at 03:18 PM.

Investors have put in nearly Rs 24,000 crore in various mutual funds in August after pulling out money from such schemes in the preceding two months.

The huge inflows of funds during August followed a net withdrawal of Rs 50,067 crore in the preceding month, taking the total outflows for two consecutive months to close to Rs 1 lakh crore.

As per the latest data available with market regulator Securities and Exchange Board of India (SEBI), investors have pumped in a net amount of Rs 23,713 crore in August in various mutual fund (MF) schemes.

This takes the MFs’ net mobilisation of funds from investors so far in the current fiscal (April-August) at about Rs 69,252 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 8.05 lakh crore in August, but also witnessed redemption worth Rs 7.81 lakh crore – resulting into a net outflow of Rs 23,713 crore.

This significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 7.66 lakh crore as on August 31, 2013 from Rs 7.6 in the previous month.

“During the financial year 2013-14 so far (April-August period), mutual funds’ net mobilisation stood at Rs 69,252 crore as compared to Rs 1,53,781 crore mobilised in corresponding period of 2012-13,” SEBI said.

Meanwhile, the benchmark S&P BSE Sensex, plunged by 726 points or 3.75 per cent, during the period under review.

Published on October 2, 2013 08:30