Mutual funds (MFs) have caught up with the May momentum in the final lap. After remaining on the sidelines for quite sometime during the market rally, they have net bought equity to the tune of about Rs 1,800 crore during the last three trading days of May.
This is perhaps the biggest purchase in a short period after the rally began in March. The sharp buying in the last few days has made May the best month in fund activity as fund houses bought net equity (higher gross purchase over sales) worth Rs 2,291 crore, the highest since September when the market downturn began.
In all, MFs bought equity worth Rs 18,956.7 crore in May, the highest in 2009, data with the Sebi shows. The May purchases, which is more than three times of what MFs bought in February and 56.1% more than what they bought in April, is the highest in nearly 15 months.
"The long term outlook has turned positive. Though inflows are not high in absolute terms, interest is picking up," says Navneet Munot, CIO, equity, State Bank of India MF. While elections acted as a trigger, recent economic data has been supportive and results have been in line with expectations, he says.
MFs turned net buyers of equity for the first time in March lapping up equity worth Rs 11,721.3 crore in the month. However, their net purchases came down from Rs 1,475.3 crore in March to mere Rs 38.9 crore in April, data shows.
This is perhaps the biggest purchase in a short period after the rally began in March. The sharp buying in the last few days has made May the best month in fund activity as fund houses bought net equity (higher gross purchase over sales) worth Rs 2,291 crore, the highest since September when the market downturn began.
In all, MFs bought equity worth Rs 18,956.7 crore in May, the highest in 2009, data with the Sebi shows. The May purchases, which is more than three times of what MFs bought in February and 56.1% more than what they bought in April, is the highest in nearly 15 months.
"The long term outlook has turned positive. Though inflows are not high in absolute terms, interest is picking up," says Navneet Munot, CIO, equity, State Bank of India MF. While elections acted as a trigger, recent economic data has been supportive and results have been in line with expectations, he says.
MFs turned net buyers of equity for the first time in March lapping up equity worth Rs 11,721.3 crore in the month. However, their net purchases came down from Rs 1,475.3 crore in March to mere Rs 38.9 crore in April, data shows.
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