Mutual funds made record purchases of more than Rs 45,000 crore in March – ..

Mumbai: Foreign institutional investors (FIIs) as well as domestic mutual funds have been net buyers in the Indian market since March ended. According to a report, mutual funds have invested more than Rs 45,000 crore in equities, the highest ever in a month. Last month, domestic institutional investors led by fund houses made overall record purchases.

The fund’s purchases come amid heavy selling in small-cap and mid-cap stocks last month. Big block deals were also seen in blue chip companies.

March purchases were more than double that of February. Earlier in March 2020, fund houses had purchased net worth of Rs 30,300 crore, which was the highest. In 2020, when the stock market faced huge selloff due to the lockdown imposed due to Corona, funds invested money in selected stocks.

The overall buying figure by Domestic Institutional Investors (DIIs) remains high as a result of heavy buying by mutual funds. Apart from mutual funds, DIIs also include insurance companies and pension firms.

Total DII purchases reached a new high of Rs 56,300 crore last month. Earlier in the report in March 2020, DII purchases worth Rs 55,600 crore were stated.

Talking about the current calendar year, fund houses have made net purchases of more than Rs 89,000 crore in equities in the first three months. For the entire year of 2023, this figure was Rs 1.70 trillion.

Fund houses are investing money in equities, which is being supported by huge investments by retail investors in the equity schemes of fund houses.