The Association of Mutual Funds of India (AMFI) released data on June 10 by the industry trade body for mutual funds, which shows that inflows into equity mutual funds increased by 83.42 per cent to a record high of Rs 34,697 crore in May.
For the 39th consecutive month, inflows into open-ended equity funds were positive in May.
While the previous record for net inflows was Rs 28,463 crore, which was achieved in March 2022, net inflows into equity mutual funds soared past the Rs 30,000 crore mark for the first time in May 2024.
Sectoral and thematic funds, which saw net purchases of Rs 19,213.43 crore in May, drove the increase in net investments into open-ended equity funds.
Equity MF Inflows
The sectoral/thematic Fund category had a record inflow of Rs 11,262.71 crore in February 2024, according to AMFI data. As of May 31, 162 mutual funds with a total assets under management (AUM) of Rs 3.37 lakh crore were included in this category.
Additionally, inflows into smaller-cap funds continued to be robust, with net inflows of Rs 2,724.67 crore and Rs 2,605.70 crore, respectively, into small-cap and mid-cap funds. Despite net inflows of Rs 663.09 crore into large-cap funds during the month, investor interest in these funds remained largely muted.
Systematic investment plans (SIPs) saw an increase in investments to Rs 20,904 crore in May compared to Rs 20,371 crore in April. For the first time ever, monthly investments made through SIPs exceeded Rs 20,000 crore in April 2024.
Debt MF inflows
Debt/income mutual funds saw a sharp decline of 77 per cent. The net inflow of debt funds stood at Rs 1,89,890.52 crore in April 2024, which plummeted to a mere Rs 42,294 crore in May 2024.
The debt's majority inflow went to liquid and money market funds in April. Out of Rs 1,89,890.52 crore in April, liquid funds and money market funds had Rs 1,02,751 crore and Rs 34,084 crore of inflows, respectively. In May, the debt fund's total inflows fell to Rs 42,294 crore, in which liquid fund and money market fund inflows stood at Rs 25,873 crore and Rs 8271 crore, respectively
