Equity mutual funds record highest-ever inflows in May

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Equity mutual funds in May witnessed the highest-ever monthly inflows, fueled by a surge in funds pouring into New Fund Offers (NFOs) and thematic schemes.

Thematic funds alone attracted ₹19,213 crore.

The inflow from NFOs surged to ₹10,140 crore, a considerable increase from ₹1,536 crore in April.

One NFO that captured significant attention was the HDFC Manufacturing NFO, which is estimated to have garnered nearly ₹9,500 crore.

The total net equity inflow for May amounted to ₹34,670.9 crore, marking a substantial increase compared to ₹18,888 crore recorded in the previous month.

Among specific categories, mid-cap funds attracted ₹2,605.5 crore, a significant increase from ₹1,793 crore in April.

Similarly, small-cap funds also saw an uptick, with inflows reaching ₹2,724.67 crore compared to ₹2,208.70 crore in the previous month.

Large-cap funds registered a noteworthy inflow of ₹663 crore, showing a substantial rise from ₹358 crore in April.

The Equity Linked Savings Scheme (ELSS) fund inflows reached ₹249.8 crore, up from ₹144 crore in April.

Additionally, inflows into index funds and other ETFs stood at ₹15,180 crore, compared to ₹12,271 crore in the previous month.

However, corporate bond fund inflows saw a decrease, totalling ₹687 crore compared to ₹2,922 crore in April.

Debt category schemes also saw substantial net inflows, totalling ₹42,495 crore, with liquid funds recording inflows of ₹25,873.38 crore, while hybrid category schemes attracted ₹17,991 crore.

Notably, Systematic Investment Plan (SIP) inflows stood at ₹20,904 crore compared to ₹20,371 crore in the previous month.

According to Gopal Kavalireddi, Vice President of Research at FYERS, despite potential high volatility from FII selling, ongoing general elections, GDP data, and other minor events in May, investors remained steadfast in their pursuit of returns on the back of the Indian growth narrative.

“This was buoyed by confidence in the incumbent government securing a record third consecutive term,” he said.