Equity purchases doubled by fund houses in April

Mumbai: The net purchase of equity by fund managers in April was Rs 16,050 crore, which is more than doubled compared to March. The figure was Rs 12,141 crore in March. According to data from the Securities and Exchange Board of India (SEBI), the average monthly equity purchase by Fund Houses in FY 2025 was Rs 39,000 crore.

Keeping in mind the fluctuations in the country’s stock markets, the mutual fund industry was seen adopting a strategy to keep more cash.

The data received shows that the cash near the mutual fund, which was Rs 1.87 lakh crore in late February, increased by Rs 18,061 crore to Rs 2.05 lakh crore in late March.

As a percentage of the total management assets (AUMs) of the fund industry, the cash in hand increased from 5.76 percent in February to 5.86 percent in March.

The country’s stock market, which was struggling with a recession after the US announced a mutual tariff, stayed last month and was managed under the leadership of foreign institutional investors.

A significant improvement in the stock markets has been seen in April amidst the purchase of foreign investors, resulting in the Nifty 50 and the Sensex are trading below seven percent of their all -time high levels of September 2024.

Given the purchase in equity by fund houses, investment in equity schemes is expected to increase.

The net flow in the funds’ equity schemes declined to Rs 25,082 crore in the third consecutive month in March. The figure was Rs 41,156 crore in December.

A fund manager said that if the current boom in the stock market continues, then investment in equity schemes is likely to increase.