Mutual funds' extravagant money flow in Q1FY17

Mutual funds have witnessed money flow of more than Rs 600 crore into equities in month of June. During Q1FY17, more than Rs 7200 crore has been invested. There wad about mutual fund investment of Rs 64000 crore in FY16.
The increasing participation from retail investors, especially from small towns, and several measures taken by Securities Exchange Board of India (SEBI) led to robust inflows in equities.

Meanwhile, market regulator has given extra incentives for those expanding into smaller cities. 
Smaller towns have contributed more than 40 per cent of inflows in equity schemes. Over the past couple of years, domestic mutual funds have witnessed bullish trend on equity schemes. The benchmark index BSE Sensex has increased by 6.26 per cent during FY17 till date.

Mutual fund managers have pumped in nearly Rs 47000 crore into the debt market in June month and Rs 85239 crore so far in the current financial year. Many fund houses are observing increased participation from investors at work for the inflows into the debt market.

As per data released by SEBI, fund managers have invested a net sum of Rs 47399 crore in the debt market in June (till June 29). Prior to that, the fund managers have pulled out Rs 2317 crore in May; while they had poured Rs 35523 crore in the month of April.