After months of subdued flows into the equity market, mutual funds staged a stellar come back into equities in month of April with the market witnessing inflows of more than Rs 9,000 crore a month.
According to the Nodal Association of Mutual Funds data, fund managers received more than Rs9,400 crore from investors in the month of April 2017, the highest number so far in 2017.
As per the data in 2015 – the first full year of Modi government – the market witnessed liquidity inflow at an average of Rs 7,096 crore. Whereas, the average monthly inflows dipped to Rs 4,572 crore in 2016.
However, 2017 staged an absolute come back with the first four months averaging more than Rs 7,267 crore.
The data also suggests that plain equity inflow figure i.e. total equity inflow of Rs 9,400 crore less equity ELSS, stood at Rs 8,842 crore, which again is the highest in the last four months.
Interestingly, the total number does not include inflows into balanced funds. If one were to add even 40percent-50 percent of balanced funds numbers into total inflows number, the number could have easily touched Rs 12,000 crore mark.
Basically, what these numbers do is, it raises a clear question whether gold and real estate are viable investments classes like they were in the past, thereby putting on record a comeback staged by equity as an investment class.