Mutual fund inflows into equities halve so far this year as retail investments slow

Mutual fund investments in stock markets halved to Rs 55,700 crore in the first 10 months of the year because of lower participation from retail investors.

Fund managers had bought shares worth Rs 1.12 lakh crore during January-October 2018, according to the data provided by the Sebi.

“Inflows from retail investors into mutual funds have slowed compared with a year ago. As a result, mutual funds deployment into stock markets has lowered,” said Vidya Bala, co-founder of Primeinvestor.in.


“Despite markets moving to new highs, since the rally is restricted to select stocks, retail investors have not seen any positive impact on their wealth. Unless retail appetite increases this trend may continue,” she added.

The frequency of investment is usually on a weekly, monthly or quarterly basis