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Mutual funds garner Rs 1.5 lakh crore in May; highest in 3 years

New Delhi:Investors pumped in a net Rs. 1.5 lakh crore in various mutual fund schemes in May - the highest amount in more than three years. Investors had poured in Rs. 1.09 lakh crore in April.
PTI June 09, 2014 9:28 IST
PTI
New Delhi:Investors pumped in a net Rs. 1.5 lakh crore in various mutual fund schemes in May - the highest amount in more than three years.
 
Investors had poured in Rs. 1.09 lakh crore in April. Industry experts attribute the rise in inflows to improved market sentiment over the past two months and steps by the Securities and Exchange Board of India, the capital market regulator, to make the mutual fund sector more attractive.
 
According to industry experts, inflows into mutual funds 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 lakh crore in May, while redemptions amounted to Rs. 15.6 lakh crore during the month.
 
Net inflows in May climbed to Rs. 1,46,095 crore - the highest level in a single month since April 2011, when investors had put in Rs. 1.84 lakh crore, as per Sebi data.
 
Total assets under the management of mutual funds have grown to a record Rs. 10.11 lakh crore 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. 54,000 crore from investors against Rs. 76,539 crore in the preceding financial year.