Equity mutual fund inflows surged by 83.42 per cent to a record high of Rs 34,697 crore in May, according to data released by the Association of Mutual Funds of India (Amfi) on 10 June 2024.
Inflows into open-ended equity funds remained positive for the 39th consecutive month in May.
Net inflows into equity mutual funds surpassed the Rs 30,000 crore mark for the first time in May 2024, with the previous record being Rs 28,463 crore in March 2022.
The surge in net investments into open-ended equity funds was driven by sectoral and thematic funds, which saw net buying of Rs 19,213.43 crore during May. Notably, the HDFC Manufacturing Fund, unveiled during the month, attracted Rs 9,563 crore from investors during its new fund offer (NFO) period.
Additionally, inflows remained strong in smaller-cap categories, with small-cap and mid-cap funds seeing net inflows of Rs 2,724.67 crore and Rs 2,605.70 crore, respectively.
Investor interest in large-cap funds was comparatively subdued, with the category seeing net investments of Rs 663.09 crore during the month.
"Political stability creates an environment conducive to sustainable economic growth, attracting investments and fostering long-term investments. Global growth is sustaining its momentum in 2024 and is likely to remain resilient, supported by rebound in global trade. The overall outlook for Indian capital markets remains positive, supported by strong fundamentals, and favourable demographics," said Venkat Chalasani, Chief Executive, Amfi.
The number of new SIPs registered in May stood at 49,74,400, while the SIP AUM reached an all-time high of Rs 11.53 lakh crore for May, compared with Rs 11.26 lakh crore in April 2024.
“Gross Inflows into active equity schemes was up 29 per cent in May 2024 vs April 2024 (month on month) crossing Rs 71000 crores. This increase can be attributed to the 119 per cent growth in gross inflows into sectoral equity schemes (Rs 25959 crores in May 24 vs Rs 11840 crores in Apr 2024) which can be attributed to NFOs,” said Mayukh Dutta, Chief Business Officer, ITI Mutual Fund.
Investment via systematic investment plans (SIPs) rose to Rs 20,904 crore in May, up from Rs 20,371 crore in April. Monthly investments via SIPs had surpassed the Rs 20,000 crore landmark for the first time ever in April 2024.
“Mutual Fund Industry assets under management are at all time high at closer to 60 lakh crore mark (59 lakh crore) on the back of strong flows across all asset classes. Equity oriented schemes have crossed 25 lakh crores for the first time as a result of strong net flows and positive market action during the month of May 2024,” said Madhu Nair, Chief Executive Officer at Union Mutual Fund.
Nair further added that strong net flows in this category have come on back of flows from existing schemes and large NFOs in the thematic space.
“This also shows the maturity of Indian retail investors and their belief in the long-term structural story of India despite of the general elections during the month.l,” Nair emphasised.
