Improved market sentiment helped mutual funds pick up shares worth more than Rs 4,000 crore in September, making it the fifth consecutive monthly inflow.
Besides, they pumped in a staggering over Rs 23,000 crore in the debt market during the period. The inflow in equities during the month followed net investment of close to Rs 6,000 crore in August, Rs 5,000 crore in July, Rs 3,340 crore in June and Rs 105 crore in May.
Prior to that, fund houses have been net sellers in the equity market since September last year, while they were net buyers of shares to the tune of Rs 1,607 crore in August 2013.
As per the latest data compiled by market regulator Sebi, Mutual Funds (MFs) purchased shares worth Rs 4,171 crore last month. Industry experts attributed the inflows in equities to improvement in market sentiments, primarily due to the new government's reforms agenda. Besides, retail participation in equity schemes has increased significantly in the last few months.