Investment by mutual funds in stocks rose more than fourfold to ₹39,477.95 crore in the six months ended 30 June from ₹8,734.33 crore in the year earlier, data from the Securities and Exchange Board of India (Sebi) showed.
Much of the investments came in March, when the markets nosedived following the covid-19 lockdown.
Purchases of equity in March stood at ₹30,285 crore. The benchmark Sensex is down 15.4% in the six months ended June.
Data from other sources on mutual fund inflows, however, do not indicate a big jump. Data released by the Association of Mutual Funds in India (Amfi) shows ₹43,052.75 crore of net inflows into equity and equity linked savings scheme, or ELSS, funds in the five months to 30 May from ₹33,871.08 crore in the year earlier.
The money of retail investors routed through monthly systematic investment plans (SIPs) has also held steady around the ₹8,000 crore-mark without any dramatic rise. Some of the slack may have been picked up by hybrid funds investing more of their corpus into equity but it is unlikely that this factor alone can make a dramatic difference.
Latest AMFI data showed net inflows into equity mutual fund schemes fell 11.6% in May to ₹5,666.34 crore from April.
Analysts said concerns about a macroeconomic slowdown and market volatility could be reasons for the lower inflow into equity schemes in May.