Inflows into equity mutual funds hit ₹34,697 crore in May 2024: AMFI data

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In May, equity mutual funds experienced an unprecedented surge in inflows, reaching a record high of 34,697 crore, as per data from the Association of Mutual Funds of India (AMFI). This surge marks an 83.42 percent increase from the previous month, setting a new milestone for the industry.

Inflows into open-ended equity funds continued their remarkable streak, remaining in the positive zone for the 39th consecutive month. This sustained growth underscores investors’ confidence in the equity market despite fluctuations and uncertainties.

SIP investments continue to climb

Investment through systematic investment plans (SIPs) surged to 20,904 crore in May, marking a notable increase from 20,371 crore in April. The milestone of crossing the 20,000-crore mark was achieved for the first time in April 2024.

Comparison with previous month

This remarkable surge in equity mutual fund inflows comes after a slight slump in April 2024, where inflows had decreased by 16.42 percent to 18,917.08 crore. The significant rebound in May indicates a renewed investor confidence and appetite for equity investments.

Category-wise inflows

A significant driver behind the surge in net investments into open-ended equity funds was the robust performance of sectoral and thematic funds. These funds witnessed net inflows of 19,213.43 crore in May, reflecting investors’ interest in specialised segments of the market.

In addition to sectoral and thematic funds, smaller-cap funds continued to attract strong investor interest. Small-cap and mid-cap funds saw notable net inflows of 2,724.67 crore and 2,605.70 crore, respectively. 

Despite the overall surge in equity mutual fund inflows, investor interest in large-cap funds remained lukewarm. The category witnessed modest net investments of 663.09 crore during the month, suggesting a preference for more specialised and potentially higher-yielding opportunities.

In the realm of fixed-income investments, there was a significant downturn in net inflows, plummeting by 77.73 percent to reach 42,294.99 crore for the month. However, amidst this decline, debt funds experienced robust inflows, particularly within the liquid fund category, where investments surged to 25,873.38 crore. 

Meanwhile, the hybrid fund category, known for its diverse asset allocation spanning equity, debt, and commodities, witnessed substantial net inflows totaling 17,990.67 crore. Notably, the arbitrage fund category stood out with remarkable buying activity, attracting net inflows amounting to 12,758.12 crore. 

Additionally, other schemes also saw positive traction, with index funds receiving net inflows of 4,490.35 crore, while gold exchange-traded funds (ETFs) witnessed notable buying momentum, totaling 827.43 crore.