Mumbai, Dec 7 : Mutual funds sharply increased their equity purchases in November, riding on a steady rise in investor inflows and improving market sentiment.

According to data sourced from SEBI, MFs invested a net Rs 43,465 crore in equities last month -- more than double the Rs 20,718 crore they pumped in during October.

Market data shows that fund houses were consistent buyers through almost the entire month, stepping back only on two days when they pulled out Rs 2,473 crore.

The strong and steady buying interest from mutual funds helped lift overall market mood and contributed to the rise in benchmark indices.

While equity inflows surged, mutual funds turned significant sellers in the debt segment.

Net outflows from debt funds shot up to Rs 72,201 crore in November, compared with Rs 12,771 crore in October.

The strong domestic investment trend comes at a time when the industry has already been witnessing robust participation from retail investors through systematic investment plans (SIPs).

In October, SIP inflows hit an all-time high of Rs 29,529 crore, rising from Rs 29,361 crore in September, as per data from the Association of Mutual Funds in India (AMFI).

Industry experts say this steady flow of money, especially into SIPs -- reflects disciplined investor behaviour despite short-term market volatility.

They believe such consistent contributions have helped expand the industryâ??s total assets under management and continue to provide crucial support to equity markets.

Analysts also note that while confidence in equities remains strong, some investors are gradually diversifying towards debt-oriented schemes and gold, given the uncertain global environment.

The trend points to a maturing investor base that balances long-term wealth-building strategies with risk management, even as mutual funds continue to play a key role in supporting the equity marketâ??s upward momentum.

/IANS