Mutual funds pumped in close to a whopping Rs 32,000 crore in the bond market in October, taking the total investment to more than Rs 5 lakh crore since the beginning of the year.
In comparison, foreign investors made a net inflow of a staggering 1.4 lakh crore in the debt market so far in 2014.
As per the latest data compiled by market regulator Sebi, the net investment by mutual funds (MFs)in the debt market during October stood at Rs 31,917 crore.
This takes the total net investment by MFs into the bond market to Rs 5,27,435 crore so far this year. In 2013, mutual funds had invested a net of Rs 5.12 lakh crore in the bond market.
Industry experts attributed the inflows in debt to the new government's reforms agenda, improved fundamentals of the Indian economy and high interest rates.
Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. MFs invest in stocks, bonds, money market instruments and similar assets.