Taking advantage of low valuations, domestic mutual funds pumped in a staggering Rs 5, 000 crore so far in the stock market in the New Year, even as overseas investors pulled back from equities. Given the sluggish trends in the real estate market and continued fall in gold prices, the mutual fund houses are expecting to attract a larger share of the Indian households' savings from this year. Mutual funds poured in Rs 5, 023 crore so far in domestic equities in the New Year after pumping in Rs 70, 716 crore in the entire 2015, as per the latest data. In comparison, foreign portfolio investors (FPIs) were net sellers of equities worth Rs 9, 963 crore during the same period. However, FPIs were net buyers of equities to the tune of Rs 17, 806 crore last year. Before that, they had invested Rs 1 lakh crore in each of the preceding three years. The investment by mutual funds comes at a time, when the stock market crashed due to sharp slump in crude oil prices and concerns over slowdown in China. The BSE's benchmark Sensex has plunged by more than 6 per cent so far this month. Domestic mutual funds have made intensive buying during the period to take advantage of the lower valuations, experts said.
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