MUMBAI: Inflows in equity mutual funds plunged to a five-month low of Rs 3,240 crore in May compared to Rs 6,480 crore in April 2023 as investors decided to book profit amid a rising stock market.
However, the investments through Systematic Investment Plans (SIPs) remained firm and breached Rs 14,000 crore mark last month. SIP inflows touched an all-time high of Rs 14,749 crore last month compared to Rs 13,728 crore in April 2023, as per data released by the Association of Mutual Funds in India (AMFI). The number of SIP accounts increase to 6.52 crore in May compared to 6.42 crore in April this year.
“More working days in May and the preference of retail investors to utilise mutual funds to invest in equity markets propelled SIPs to record highs. The rotation of money into small-caps that are expected to rise after a steep correction and profit booking with index nearing record levels triggered moderation in large-caps, midcaps, and multi-caps,” NS Venkates, CEO, AMFI said addressing a press conference.
“Investors are choosing to invest in categories where they find value. The figures indicate that retail investors have maintained their confidence in SIP as their preferred investment instrument for wealth creation. Overall mutual funds have shown an uptick even in the midst of volatile markets,” he added. The Asset Under Management (AUM) of the industry rose to Rs 43.2 lakh crore as of May-end from Rs 41.62 lakh crore at the end of April.
The mutual fund industry, including debt, equity, hybrid and other schemes, saw net inflows Rs 57,420 crore in May. Within equities, the highest outflows Rs 1,362 crore were seen in the large-cap category, followed by the focused category (Rs 944 crore) and ELSS category (Rs 504 crore). However, investors continued to repose faith in small-cap funds with a 50 % jump in net flows to Rs 3,282 crore.