Heavy drop in mutual fund investment amid stock market fluctuations
Heavy drop in mutual fund investment amid stock market fluctuations
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Mutual fund investment in India's stock markets declined by half in the first 10 months of the year to Rs 55700 crore. The reason for this is the lack of retail investors' participation in mutual funds. According to data from the Securities and Appellate Board of India (SEBI), the fund managers bought shares worth Rs 1.12 lakh crore during January-October last year.

Vidya Bala, co-founder of Prime Investor.in, said retail investors' investment in mutual funds was lower than the year-ago period. As a result, investment in stock markets by mutual funds has reduced.

He said that as the market reached a new high, retail investors were not found to have any positive impact on their assets. The only reason for this is that the boom is limited to a few select stocks. Until the retail investors come forward for investment, this trend may continue in the coming times.

Under SIP, investors are seen to be putting fixed amount on fixed period. Out of the total investment of Rs 55,700 crore this year, most of the investment was during July-September. Fund managers invested a net of Rs 43,500 crore during this period. On the one hand, foreign investors had withdrawn Rs 22,400 crore in these three months.

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