Investors pumped in a net ₹1.5 lakh crore in various mutual fund schemes in May, the highest amount in more than three years. Investors had poured in ₹1.09 lakh crore in April.

Industry experts attribute the rise in inflows to improved market sentiment over the past two months and steps by the Securities and Exchange Board of India, the capital market regulator, to make the mutual fund sector more attractive.

According to industry experts, inflows into mutual funds may increase in the months ahead. Mutual funds pool money raised from the public and invest it on their behalf in accordance with a stated set of objectives.

At the gross level, mutual funds mobilised over ₹17.06 lakh crore in May, while redemptions amounted to ₹15.6 lakh crore during the month.

The net inflows in May climbed to ₹1,46,095 crore, the highest level in a single month since April 2011, when investors had put in ₹1.84 lakh crore, according to SEBI data.

Total assets under the management of mutual funds have grown to a record ₹10.11 lakh crore as of May 31.

SEBI recently cleared the first long-term policy for the sector, proposing a number of tax benefits and measures for the growth of the mutual fund business. The policy is aimed at channelising household savings into equities and mutual funds.

In 2013-14, mutual funds had garnered almost ₹54,000 crore from investors against Rs 76,539 crore in the preceding financial year.

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