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Equity mutual fund inflows surged 83.42% 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 June 10. This marks the 39th consecutive month of positive inflows into open-ended equity funds.
In May 2024, net inflows into equity mutual funds surpassed the Rs 30,000 crore mark for the first time, breaking the previous record of Rs 28,463 crore set in March 2022. The surge in net investments into open-ended equity funds was primarily driven by sectoral and thematic funds, which saw net buying of Rs 19,213.43 crore during the month. Notably, the HDFC Manufacturing Fund, launched in May, attracted Rs 9,563 crore during its new fund offer (NFO) period.
Despite potential high volatility from FII (foreign institutional investors) selling, ongoing general elections, GDP data, and other events in May, investors remained steadfast, driven by confidence in the Indian growth narrative and the incumbent government securing a record third consecutive term, as highlighted by Gopal Kavalireddi, Vice President-Research at FYERS.
Inflows into smaller-cap funds remained strong, with small-cap and mid-cap funds seeing net inflows of Rs 2,724.67 crore and Rs 2,605.70 crore, respectively. However, investor interest in large-cap funds was relatively lukewarm, with the category seeing net investments of Rs 663.09 crore during the month.
