New Delhi: Open-ended equity mutual funds reported net inflows in May 18,529, up 16.6% sequentially, despite volatility in markets, according to data released by the Association of Mutual Funds in India (Amfi) on Thursday. Investing in equity funds has been positive for 15 consecutive months.
This came despite a fall in Indian equity benchmarks in May amid a surge in volatility. Both Sensex and Nifty lost around 2.5% during the month.
Overall, open-ended mutual funds saw a net outflow of ₹7,533 crore as against the inflow of 72,847 crore in April, due to rising interest rate cycle, investors redeemed their investments from money market and shortest duration funds.
In addition, inflow of Systematic Investment Plan (SIP) 12,286 crore in May as against Rs 11,863 crore in April indicated that retail investors kept faith in equity investments.
This was also the ninth consecutive month of SIP inflows, which was more than 10,000 crores, the trend that started in September 2021 10,351 crore.
Chief Executive Officer NS Venkatesh said, “Despite market being very volatile and interest rate hike by Reserve Bank of India to fight inflation, we are still seeing good numbers in mutual funds, especially equity mutual funds. ” , Amphi.
In specific equity segments, large-cap mutual fund inflows grew by 97.4% on a month-on-month basis, equity-linked savings schemes (ELSS) by 143 per cent and flexi-cap inflows by 72%.
“The Balanced Hybrid Fund/Aggressive Hybrid Fund category saw net flows grow by 97 per cent, indicating that with uncertainties on the economic and rate cycles, investors do not want to take the wrong step and re-allocate their investments based on their risk profile. are. Opportunities available,” said Gopal Kavalireddy, Head of Research at FYERS, a technology-focused stock broking and investment platform.
As per Amfi data, total assets under management fell 2.1% month-on-month 37.3 lakh crore with assets under management (AUM) of debt and equity schemes, a decline of 2.5% each.
Overnight funds saw a rise of 14.4% AUM, while money market and dynamic bond funds saw double-digit AUM declines.
“This fall in AUM is due to the change in asset prices in May where while most of the Nifty 50 indices gave negative returns, Nifty 50 itself declined 3.03%. Nifty hit an all-time high in October 2021 and has since been stuck in a range due to various macro and microeconomic factors,” Kavalireddy said.