While pension schemes of insurers are under the Insurance Regulatory and Development Authority, schemes floated by mutual funds are regulated by the Securities and Exchange Board of India.
Experts feel that if domestic investors had not participated in big numbers, the fall in the markets would have been more pronounced.
Interest rates in India are on a downward trajectory and RBI is expected to go for a rate cut in its next monetary policy review on June 2 which only augurs well for debt investment.
Even the balanced scheme and equity linked savings schemes witnessed strong net inflow over the last one year.
Financial planners say the low popularity of the schemes is due to the tax treatment at the time of withdrawal.
The finance ministry last November announced a liberalised DR scheme that includes new asset classes.
The last six months has seen a rise in inflow into equity linked savings schemes of mutual funds with investors putting in about Rs 1,316 crore in them.
The CNX Nifty gained 19 per cent in the six months ended September 2014.
Mutual fund managers dropped their exposure in bank stocks to Rs 55,398 crore in September.
The comparative analysis between debt-based funds and S&P India’s two benchmark indices — government bond index and bond index — is for the five years ended June 2014.
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As many as 22 out of a total of 50 top diversified equity schemes have beaten the benchmark indices this year.
Investors pumped in a net Rs 1.5 trillion in various mutual fund schemes in May, the highest amount in more than three years.
In comparison, MF exposure to was at all-time high in February.