Mutual Funds buy Rs 6,000 crore shares in August

New Delhi: Improved market sentiment helped Mutual Funds to pick up shares worth close to Rs 6,000 crore in August, making it the highest monthly inflow in more than six-and-a-half years. This also marks the fourth consecutive month of inflows into equities. Besides, MFs pumped in a staggering Rs 66,000 crore in the debt market during the period.  The inflow in equities during the month followed net investment of Rs 5,000 crore in July, Rs 3,340 crore in June and Rs 105 crore in May.     

Prior to that, fund houses have been net sellers in the equity market since September, while they were net buyers of shares to the tune of Rs 1,607 crore in August 2013. As per the latest data compiled by market regulator Sebi,MFs purchased shares worth Rs 5,846 crore this month. This was the highest monthly inflow since January 2008, when they had invested Rs 7,703 crore in stock markets.     

Industry experts attributed the inflows in equities to improvement in market sentiments primarily due to the new government's reforms agenda. Besides, retail participation in equity schemes has increased significantly in the last few months.     

"The money in equities has been coming in the past two months and mostly in the second half of May after the General election results," said a market expert.