Investors put in Rs 1.23 lakh cr in July

Mutual fund investors put in more than Rs 1.23 lakh crore into various schemes in July - the second biggest infusion in a month this fiscal - mainly in fixed income plans.

The Association of Mutual Funds of India (AMFI) in a monthly report said at the end of July, investors had put in funds worth Rs 1,23,679 crore (Rs 1.23 trillion). The maximum of infusion of funds was in fixed income plans.

This is the second biggest inflow in the fiscal 2009-10 after the Rs 1,54,192 crore (Rs 1.54 trillion) investment in April.

The MF industry had witnessed outflows worth Rs 83,937 crore in June, after two consecutive months of inflows, which analysts believe was mainly on the back of a heavy pull-out by banks.

At the end of July, fixed income plans with assured annual returns, saw a maximum investment of Rs 95,764 crore (Rs 957.64 billion), followed by liquid or money market funds which have a higher liquidity and a short maturity period, that saw inflows worth Rs 24,698 crore (Rs 246.98 billion).

Besides, equity funds investing in stocks attracted investments worth Rs 4,232 crore (Rs 42.32 billion).

"The banks can better anticipate the interest rate scenario in the country and accordingly they change their investment strategy," Taurus Mutual Fund Managing Director R K Gupta said.