Home / Mutual Funds / News /  Net inflow in equity schemes falls in May, credit risk funds see lower outflow

As markets succumbed to sell-off pressures in May while volatility in Indian stocks increased, equity mutual fund schemes saw lower inflow into equity mutual fund schemes. Net inflow into equity mutual fund schemes fell 11.6% in May to 5,666.34 crore from April, according to data released by the Association of Mutual Funds in India (Amfi) on Monday. This compares to an inflow of 5,847.07 crore in May last year.

According to NS Venkatesh, chief executive, Amfi concerns about macro economic slowdown and market volatility could be reasons for the lower inflow into equity schemes in May. Redemption pressure from equity schemes eased to 7,283.23 crore in May from 8104.46 crore last month and 14,237.25 crore in same month last year.

The money of retail investors routed through monthly systematic investment plan (SIP) contributions saw a marginal dip to 8,123,03 crore in May from 8,376.11 crore in April.

Kaustubh Belapurkar, Director, Manager Research, Morningstar India said, “Inflows into equity funds, while lower than previous months continue to remain positive largely driven by SIP inflows. Investors continue to prefer large and multi cap funds given the market volatility and uncertain economic environment due to the covid-19 pandemic.

Outflow from credit risk funds decreased to 5173.04 crore in May from 19,239 crore last month.

Overall, debt funds saw an inflow of 63,665.54 crore in May, the Association of Mutual Funds in India (Amfi) data showed.After an outflow of 1.94 trillion in March, debt funds had received overall inflows of 43,431.55 crore in April.

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