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NEW DELHI : Inflows into open-ended equity mutual funds (MFs) stayed in the green for the 15th straight month and rose 17% sequentially to 18,529 crore in May despite volatile markets, according to data released by the Association of Mutual Funds in India (Amfi).

Investors were reallocating their savings in fixed income asset class more towards liquid and overnight categories and safer government securities schemes during May. This came on the back of rising interest rates.

Steady inflows
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Steady inflows

Systematic investment plan (SIP) inflows increased to 12,286 crore in May against 11,863 crore in the previous month, indicating the continued confidence of retail investors in requity investments.

This is the ninth consecutive month of SIP inflows being greater than 10,000 crore, a trend that started in September 2021 with 10,351 crore. Amfi data also highlighted that 19.74 lakh SIPs were registered in May.

“The retail investor confidence on equity asset class stems from the India growth story continuing to be more promising than other major economies. Also, domestic investment flows into Indian equities continue to be robust despite foreign institutional investor outflows," said N.S. Venkatesh, chief executive officer, Amfi.

In the equity or growth category, flexi-cap, large-cap, and large and mid-cap schemes emerged as the top three in net inflows. In the hybrid category, there were positive flows in the dynamic asset allocation, balanced hybrid and aggressive hybrid, and arbitrage schemes.

“Balanced hybrid fund/aggressive hybrid fund category net flows were up 97%, indicating that people are reallocating investments based on their risk profile and opportunities," contended Gopal Kavalireddi, head of research at FYERS, a technology focused stock broking and investment platform. Open-ended debt oriented funds saw a net outflow of 32,722 crore compared with the previous month’s net inflows of 54,756 crore, showed Amfi data. Money market funds saw outflows of 14,598 crore.

“This could be a sign of investors‘ short-term money requirements because of the current market scenario of rising repo rates and inflation rates," said Priti Rathi Gupta, founder, LXME, a financial platform for women.

The total assets under management (AUM) of the mutual fund industry were down 2.1% on a month-on-month basis at 37.3 trillion. The AUM of debt and equity schemes had negative growth of 2.5%.

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