MFs invest Rs. 1.82 trillion in equities in FY23

Mutual funds remained bullish on the Indian equities in 2022-23 and invested Rs 1.82 lakh crore largely due to a strong interest from retail investors and the correction in the market that led to reasonable valuation. This comes following a similar amount of Rs 1.81 lakh crore invested by mutual funds in the stock market in preceding financial year 2021-22 (FY22). Before that, they had pulled out Rs 1.2 lakh crore from equities in 2020-21, according to the data with the Securities and Exchange Board of India (Sebi).

Going ahead, equity outlook for the current financial year (FY24) will start improving in a couple of quarters once inflation starts coming down in the US and its central bank — US Federal Reserve — will change its policy stance from hawkish to dovish, Rajiv Bajaj, Chairman and Managing Director of Bajaj Capital, said. In the longer-term, India’s growth prospect is higher amidst concern of slowing growth in major developed economies.

According to the Sebi data, mutual funds have invested a net amount of Rs 1.82 lakh crore in the just concluded financial year.