NEW DELHI: Mutual funds have invested just Rs 1,230 crore in the stock markets since the beginning of the nation-wide lockdown, latest data from the Securities and Exchange Board of India (Sebi) shows. According to analysts, this low inflow of capital from MFs during the lockdown has been primarily due to the risk of possible redemptions by corporate houses, leading to the need to maintain high liquidity.
According to Sebi data, MFs have invested a net Rs 1,230 crore in stocks since the nationwide lockdown was announced on March 24. In contrast, MFs had invested Rs 6,363 crore in stocks in the last week of March. For the whole month of April, however, MFs pulled out Rs 7,965 crore before reversing the selling trend in May, investing a net Rs 2,832 crore. For the whole of March, MFs had made a whopping Rs 30,000 crore in investments due to attractive valuations since many company scrips hit their 52-weeks lows.But, foreign investors pulled out a massive Rs 61,973 crore from equities in March and Rs 6,883 crore in April before turning net buyers in May and investing over Rs 14,500 crore.