While Prime Minister Narendra Modi’s historic announcement of scrapping high denomination notes led to an acute cash crunch since November 9, investment in insurance and mutual fund schemes surged as cash transactions in other assets such as real estate and gold were crimped.
Investment in mutual funds jumped 37% and insurance premium payment was up by 31% during April to February 2016-17, data from financial regulators show.
What is surprising, the growth in investment in both mutual funds and insurance schemes has been stupendous in November, when the ban on Rs 500 and Rs 1,000 notes came into effect.
SEBI data show mutual funds witnessed inflows of Rs 1,00,760 crore between November 2016 and January 2017, as compared with an outflow of Rs 31,190 crore during the same period a year ago.
