Indian mutual fund (MF) industry has started investing in the equity market slowly in contrast to its practice of sitting on pile of cash since the beginning of this year. However, with interest rate coming down coupled with valuations being attractive, several fund houses have increased their exposure in the banking and realty sector in April compared to March 2009.
The realty sector saw inflow of Rs 308.16 crore in April compared to 98.76 crore in March, an increase of 209.4 crore, a report by the Bonanza MF Research says. The realty index in the BSE gained 29% in April compared to 13% in March.
“There has been good amount of inflows in the realty and banking sector in April. As interest rates are coming down and valuations of the both realty and banking stocks were very attractive, so several fund houses have parked their money in these sectors,” Gopal Agarwal, head, equity at Mirae AMC said.
Banking sector climbed by Rs 2,633.36 crore from Rs 12,285.86 crore in March to reach Rs 14,919.22 crore in April in terms of inflows.
Bankex, banking index of BSE increased to 23% in April compared to 11% in March.
“If we look at the price of realty and few banking stocks, they have almost doubled up in the last few months. Apart from that, I also believe realty sector was always in demand. Things have started looking brighter and once the Budget is out, we might witness more inflow in the both the interest rate-sensitive sectors,” added Agarwal.
Some market players say several big fund houses have invested in equity schemes in April. “Lot of fund managers tried to book profit and to catch up the situation. Many fund houses were sitting on huge cash, so once they thought, it was the right time to invest in the market, they started pouring money in the banking and realty schemes,” said Dhirendra Kumar, CEO of Valueresearch.
In March, total cash available with Reliance MF stood at 5,431.17 crore or 28.08% in open-ended equity scheme, which came down to Rs 5,902.26 or 26.89% in April. While Birla Sun Life MF was at Rs 788.13 crore or 18.18% in March, it fell to Rs 599.83 crore or 12.5% in April.
The realty sector saw inflow of Rs 308.16 crore in April compared to 98.76 crore in March, an increase of 209.4 crore, a report by the Bonanza MF Research says. The realty index in the BSE gained 29% in April compared to 13% in March.
“There has been good amount of inflows in the realty and banking sector in April. As interest rates are coming down and valuations of the both realty and banking stocks were very attractive, so several fund houses have parked their money in these sectors,” Gopal Agarwal, head, equity at Mirae AMC said.
Banking sector climbed by Rs 2,633.36 crore from Rs 12,285.86 crore in March to reach Rs 14,919.22 crore in April in terms of inflows.
Bankex, banking index of BSE increased to 23% in April compared to 11% in March.
“If we look at the price of realty and few banking stocks, they have almost doubled up in the last few months. Apart from that, I also believe realty sector was always in demand. Things have started looking brighter and once the Budget is out, we might witness more inflow in the both the interest rate-sensitive sectors,” added Agarwal.
Some market players say several big fund houses have invested in equity schemes in April. “Lot of fund managers tried to book profit and to catch up the situation. Many fund houses were sitting on huge cash, so once they thought, it was the right time to invest in the market, they started pouring money in the banking and realty schemes,” said Dhirendra Kumar, CEO of Valueresearch.
In March, total cash available with Reliance MF stood at 5,431.17 crore or 28.08% in open-ended equity scheme, which came down to Rs 5,902.26 or 26.89% in April. While Birla Sun Life MF was at Rs 788.13 crore or 18.18% in March, it fell to Rs 599.83 crore or 12.5% in April.
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