New Delhi: Mutual fund companies have invested Rs 1,230 crore in the stock markets during the lockdown. Industry experts believe that mutual fund companies are still waiting for a good ‘entry point’ in the market. They are keeping their cash levels high in view of any possible withdrawal by corporate houses.
Vidya Bala, co-founder of PrimeInvestor.in, said, “The investment of mutual funds in shares will depend on the flow of investment by investors. However, it will be quite challenging, as the next quarter will see a large number of retail investors’ salaries falling and there is a risk of them losing their jobs. “According to the latest data from the Securities and Exchange Board of India (SEBI), the lockdown was announced on March 24 Mutual fund companies have since invested Rs 1,230 crore in shares.
In the last week of March, mutual funds added Rs 6,363 crore to the shares, while in April they pulled out Rs 7,965 crore. According to the data, he invested Rs 2,832 crore in May. Anshu Jain, co-founder and CEO of Ashika Wealth Advisors, said that mutual fund companies are not investing huge amount in shares. They are now waiting for a good ‘entry point’. Jain said that it could be available to mutual fund companies in two months. He added that apart from this, mutual fund companies are maintaining considerable liquidity with them, as they may face withdrawal pressure from corporate houses after the lockdown.