Amid volatility in the stock market, uncertainty due to Ukraine-Russia war and high inflation, equity mutual funds (MFs) remained attractive options for investors for the fifteenth consecutive month in May. In May 2022, when Nifty fell below 16,000, inflows (pre-new fund offers or NFOs) increased 18,500 crore as compared to 12,800 crore in April, a jump of 45%.
A similar high inflow was witnessed in March 2022 as well as in March, April 2020 when the market fell. Highlighting brokerage ICICI Securities, the trend of higher inflows continues during the downtrend.
All equity-oriented categories received net inflows in May, with the flexi cap fund category being the biggest gainer with net inflows. 2,939 crores. Systematic Investment Plan (SIP) inflows continue to trend upward with inflows in May 2022 12,300 crores.
Mirza International, Maharashtra Scooters, PCBL Ltd., Tattva Chintan Pharma Chem, RBL Bank, JK Paper, Pesticide (India), Root Mobile, Go Fashion (India) and Nazra Technologies were among the top 10. small cap stock According to a research report by brokerage house ICICI Securities on last month’s mutual fund (MF) activity, the fund was bought by the fund house in May.
On the other hand, Intellect Design Arena, Chennai Petroleum Corporation, Ashiana Housing, The India Cements, Polyplex Corporation, Indiabulls Real Estate, Mastec, Caplin Point Laboratories, Amara Raja Batteries and Jindal Stainless were among the smallcap stocks that top asset management companies ( AMC) sold in the last month.
Altogether, mutual fund Industry registers net withdrawal 7,532 crore last month as compared to the net inflow of 72,846 crore in April. The overall outflow dragged down the average assets under management (AUM) of the industry 37.37 lakh crore by the end of May 38.89 lakh crore at the end of April, according to data released by Association of Mutual Funds in India (Amfi).