Mutual funds are a boon for stock market. Rs 11, 600 cr pumped in

Mutual funds are a boon for stock market. Rs 11, 600 cr
pumped in
Thanks to the mutual funds, Rs 11,600 crores is getting pumped into the stock market. If the news agency is to be believed, this is on top of over Rs 70,000 crore already invested in the entire 2015 and around Rs 24,000 crore in 2014.

TOP VIDEOS FOR YOU
"Over the last few years, we have seen a shift in investment towards equity class as investment avenues like real estate and gold are not doing well," Bajaj Capital Group CEO and Director Anil Chopra told the news agency.

Besides, equity mutual funds have added over 11 lakh investor accounts or folios in the first five months of the current fiscal to cross 3.7 crore by the end of August.
Advertisement


Market experts attributed the inflow to investment in systematic investment plans (SIPs) and strong participation from retail investors.

SIP is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.

As per data released by Securities and Exchange Board of India (Sebi), mutual fund managers invested a net sum of Rs 11,608 crore so far in the calendar year 2016 (January- September).
Advertisement

In addition, fund managers have infused Rs 2.50 lakh crore in the debt markets during the period under review.

The inflow is in line with BSE's benchmark Sensex rising 9.5 per cent during the period under review.

A mutual fund is an investment vehicle with a pool of funds collected from various investors to buy stocks, bonds, money market instruments and similar assets.