Big corporates investing in equity MFs


Corporate treasuries with large cash reserves have started allocating money to equity funds as they expect stocks to perform well over the next two years, fund industry sources said. The past two months have seen several cash-rich companies increasing their exposure to stocks through investments in equity mutual funds. Corporates such as ITC, Hindustan Zinc, Sesa Goa, Asian Paints, ACC, Reliance Industries , Larsen & Toubro , Emami , and several mid-cap IT firms have started making small investments in equity funds managed by leading asset management companies. Market correction in March and April, which resulted in Sensex declining over 16%, provided a good entry point for corporate treasuries to invest in equity mutual funds.
http://economictimes.indiatimes.com/personal-finance/mutual-funds/analysis/big-corporates-and-cash-rich-companies-investing-in-equity-mutual-funds/articleshow/9006747.cms

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