Indians invest record Rs.34,697 crore in equity mutual funds this May: AMFI

The previous record for net inflows was Rs.28,463 crore, in March 2022.

Equity mutual funds saw an 83.42% surge in investment, rising to a record high of Rs.34,697 crore in May, according to the data released by the Association of Mutual Funds of India (AMFI).

Investment via systematic investment plans (SIPs) rose to Rs.20,904 crore in May, compared to Rs.20,371 crore in April. Monthly investments via SIPs topped the Rs.20,000-crore landmark for the first time ever in April 2024, according to a Moneycontrol report.

Net inflows into equity mutual funds zoomed past the Rs.30,000 crore level for the first in May 2024, as the previous record for net inflows was Rs.28,463 crore, which was hit in March 2022.

The surge in net investments into open-ended equity funds was fuelled by sectoral and thematic funds, which saw net inflows of Rs.19,213.43 crore during May. For example, HDFC Manufacturing Fund, which was launched during the month, garnered Rs.9,563 crore from investors during its new fund offer (NFO) period, according to the Moneycontrol report.

Further, inflows remained strong in smaller-cap funds as small-cap and mid-cap funds saw net inflows of Rs.2,724.67 crore and Rs.2,605.70 crore, respectively. Investor interest remained largely lukewarm for large-cap funds as the category saw net investments of Rs.663.09 crore during the month, the report read.

Equity mutual fund inflows slumped 16.42% to Rs.18,917.08 crore in April 2024.

Indian benchmark indices traded largely flat in May as the BSE Sensex and the NSE Nifty inched lower by around 1%.

In the fixed-income or debt instrument category, net inflows slumped 77.73% during the month to Rs.42,294.99 crore.

Overall, open-ended mutual funds saw net inflows of ₹1.11 lakh crore during May.