Mutual funds pump Rs5,87,000 cr into domestic debt market in FY15
04 Apr 2015
Mutual fund managers pumped in Rs77,712 crore into debt in March 2015 alone, taking total mutual fund investments in the domestic debt market in the 2014-15 financial year to Rs5,87,000 crore, an year-on-year increase of eight per cent.
As per data released by the Securities and Exchange Board of India (Sebi), mutual funds invested a net amount of Rs5,87,000 crore in debt market in 2014-15, compared to Rs5,43,000 crore in the preceding year.
The increased inflow has been attributed to favourable economic climate, especially in the wake of a surprise 25 bps cut in RBI's repo rate in March.
Mutual funds also invested a net amount of Rs40,000 crore in equity markets during the 2014-15 financial year.
Total assets under management (AUM) of mutual funds reached Rs12,00,000 crore at the end of the financial year.
Foreign institutional investors (FIIs) made a net investment of Rs1,64,000 crore in the country's debt markets during the year.
Industry body Association of Mutual Funds of India's (Amfi), meanwhile, put a one per cent cap on upfront commission paid to distributors.
Fund managers expect overall inflows into equities and debt markets for the current financial year (2015-16) to keep pace with the current trend.