New Delhi: Investments in stock market mutual fund schemes declined by 50 per cent to around Rs 12,000 crore in the October-December quarter as compared to the previous quarter.
The main reason for this decline is the slowdown in economic growth and investor concerns over stock valuation. This reduction in investment was observed in all categories of equity funds, including large companies (large caps), mid-cap companies (M-cap), small-cap stocks (small-cap) and dividend-related schemes.
According to a Morningstar report, the total investment in stock market-linked mutual fund schemes stood at Rs 11,837 crore in the July-September quarter of Rs 23,874 crore. Earlier, the investment in such schemes was Rs 17,500 crore in the April-June quarter. However, the asset base of such mutual fund schemes grew by six percent to Rs 7.7 lakh crore in the quarter ended December.
More than 30 percent of the total investment in stock market-linked mutual fund schemes was directly invested in the shares of large companies. During the review period, Rs 3,500 crore was invested in this category of schemes, while Rs 2,688 crore was invested in mid-sized companies and Rs 1,360 crore in the shares of small companies.