Equity mutual funds registered a staggering inflow of Rs 2.86 lakh crore in the past 11 months bolstered by the ban on high value currency notes, latest industry data showed.
The sudden spike in bank deposits and consequent decline in interest rates following demonetisation on November 8, 2016 led to surge in inflow into equity mutual funds, an analyst said.
According to the Association of Mutual Funds in India (Amfi) data, equity funds received an inflow of Rs 2.86 lakh crore from November 2016 to October 2017. Prior to that, such funds had registered flows of Rs 1.5 lakh crore between October 2016 and December 2015.
"Along with that optimism of investors, demonetisation actually helped the industry to attract more investments. We have seen Rs 2.86 lakh crore coming into the mutual funds but we have also seen some redemptions. After taking into account redemptions, we have a net inflow of Rs 1.35 lakh crore.
"The gross figure will give the real picture of money ...
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