Domestic mutual fund flows into the stock markets touched the Rs one lakh crore-mark for the calendar year 2017 so far. This is more than three times of the MF flow during 2016.

The prolific flow regardless of dampening economic macros of past two quarters has been on account of incremental participation of retail or household investors who are accessing the market via various Systematic Investment Plans (SIPs).

Advertisement

SEBI numbers suggest compared to calendar year or CY2016’s equity investment of `29,374 crore by MFs, this year’s flow as on 10 November was at `1,02,810 crore. Foreign Portfolio Investors (FPIs) who are in withdrawal mode in 2017 have invested `48,190 crore during the same period, which is still better that previous calendar year’s `43,280 crore.

SIPs of different mutual funds have become the preferred products for investors who despite decline in returns in equity investments on account of valuations are veering away from realty, gold and other traditional modes of medium to long-term investments, say analysts.

Considering that barely 3 per cent population of the country deals invests in, analysts say, mutual funds are likely to open more accounts. Excess funds in hand give mutual funds a chance to spread their holdings across all segments. Data shows rise in their stakes in 173 of BSE500 stocks in the CY17.

Meanwhile, Sensitive Index of Bombay Stock Exchange and Nifty of National Stock Exchange lost further ground on Wednesday owing to weak global cues, crude prices and 1.12 per cent decline in the country’s exports in October that has widened trade deficit to three-year high of $14 billion.

Sensex closed 32,760.44(-181.42) points falling 0.55 per cent. Nifty lost 0.67 per cent to end 10,118.05(-68.55)points.

The indices consolidation continued for third session running as traders booked more profit. Private sector bank shares were in demand while state-run lenders with an exception of Bank of Baroda were offloaded by traders. BoB stock intra-day jumped more than 4 per cent as many brokers revised their target prices following improved earnings in Q2.

Bank Nifty closed 25,218.90 (-65.70) points, down 0.26 per cent, while PSU Nifty Bank at 3,904.55 (-44.65)points declined 1.13 per cent. In 30-share Sensex, six stocks advanced and 24 declined. For Nifty, the ratio was 13:37. Gainers in BSE benchmark included Asian Paints, `1,177.55, 2.02 per cent, Kotak M Bank Rs 1,012, 1.27 per cent, ICICI Bank `316, 0.69 per cent. Among top losers were SBI ` 326.50, -0.82 per cent and Axis Bank `543.40, 0.52 per cent.