Mutual Funds (MFs) sold equity assets worth more than Rs 3,000 crore during September, as markets rallied on restoration of the long-awaited economic reforms by the union government.

According to figures released by the Securities & Exchange Board of India (SEBI), mutual funds sold equity assets worth Rs 3,008.10 crore as on 27th of September. It was the biggest sale by mutual funds in the past four months, as benchmark Sensex gained 7.42 per cent on the back of strong buying by foreign institutional investors.

However, many experts pointed out that mutual funds were not selling across the board.

Arihant Capital markets' director, Anita Gandhi, said, "Mutual funds are not selling across the board, they have been selective; the insurance firms have been on the sell side during the current rally."

In debt instruments, mutual funds got net investment of Rs 48,693.20 crore as on September 27, while figures released by Association of Mutual Fund in India (AMFI) showed that the mutual fund industry had equity assets worth around Rs 1.75 lakh crore in various schemes at 31st of August.

Data compiled by stock exchanges revealed that domestic institutional investors were the net sellers of equities worth slightly more than Rs 679.06 crore as on 28th of September.

In the previous months of August and July, the mutual funds had sold equity assets worth around Rs 1,631 crore and Rs 1,988 crore respectively.