Investors bet on equity mutual funds in August.

Equity mutual funds attracted Rs 1,942 crore in net inflow in August, even as the outflow from the debt and money market funds led to a decline of 4% in the domestic mutual fund industry's total assets under management to Rs 6.97 lakh crore.

Analysts credited the net inflows in equity funds, a month after the industry witnessed a net outflow of Rs 729 crore, to the cheaper valuations of stocks which offered more units to the mutual fund investors. "The near-17% fall in markets over the past nine months has given investors an opportunity to buy equities at cheaper valuations. High net worth investors have begun investing in markets; many of them are now investing in markets through mutual funds," said Vijai Mantri, managing director, Pramerica Mutual Fund.

Source: http://articles.economictimes.indiatimes.com/2011-09-12/news/30145122_1_income-funds-mutual-funds-income-space