Mutual fund net investments down 42% in H1

Net investments of mutual funds into debt and equity markets have declined by 41.9% on a year-on-year basis for the first half of the financial year.

The mutual fund investments in the markets touched Rs 1,53,100.98 crore in H1 FY19, as against Rs 2,63,680.56 crore during the same period of 2017-18, Sebi data reveals.

According to experts, the drop in the mutual fund investments is reflective of the market sentiment right now. “Mutual funds are reflecting the market sentiments. There is a general election ahead of us,” a market analyst said.

“So investors are wary of what is on the cards. As the general sentiment is negative, markets are reflecting it,” the analyst told DH.

Out of Rs 1.53 lakh crore of net investments, over Rs 53,865 crore was invested into the equity market, while over Rs 99,235 crore was parked in the debt market.

In the April-September period of 2017-18, the equity and debt markets witnessed net investments worth Rs 76,905.83 crore and Rs 1,86,774.73, respectively.