Equity mutual funds see ₹10,000 cr inflow in May
It was higher than ₹3,437 cr net inflow seen in April and ₹9,115 cr in March
NEW DELHI: Equity mutual funds witnessed a net inflow of over ₹10,000 crore in May, making it the third consecutive monthly infusion.
This was way higher than ₹3,437 crore net inflow seen in April and ₹9,115 crore in March, data from the Association of Mutual Funds in India showed.
Prior to this, equity schemes had consistently witnessed outflow for eight straight months from July 2020 to February 2021. On the other hand, investors pulled out ₹44,512 crore from debt mutual funds last month after infusing over ₹1 lakh crore in April.
Overall, the mutual fund industry witnessed an outflow of ₹38,602 across all segments during the period under review, compared to an inflow of ₹92,906 crore in April.
As per the data, inflow from equity and equity-linked open ended schemes was at ₹10,083 crore in May. Barring equity linked saving schemes (ELSS), which saw a withdrawal of ₹290 crore, all the equity schemes have seen inflow last month.
Further, Gold exchange traded funds (ETFS) witnessed net inflow of ₹288 crore last month, compared to ₹680 crore in April.
The asset under management (AUM) of the mutual fund industry rose to an all time high of ₹33 lakh crore in May-end from ₹32.38 lakh crore in Aprilend.
“For the third consecutive month, equity mutual fund inflows have been positive. Investors who have accumulated higher savings in the last year due to lower spending and were staying on the sidelines are slowly getting back. The strong returns in equities and the stability of the markets despite the second wave provide the much-needed positive nudge,” said Arun Kumar, head of research, Fundsindia.
Multi-cap category was the biggest beneficiary during the month. Mid- and small-cap categories also received significant flows, while sector and thematic funds also continue to receive enhanced traction from investors. Except for the equitylinked savings scheme (ELSS) category, all the equity-oriented categories have witnessed net inflows.
Significant improvement on the coronavirus situation with daily Covid-19 cases falling consistently, along with improving recovery rate over the last few weeks, would have provided comfort to investors. Good quarterly results, positive earnings growth outlook over the long-term, and waning concerns of any severe impact of the second wave of the pandemic on the economy, would have also boosted sentiments. This would have prompted investors to again allocate assets towards equities,” Himanshu Srivastava, associate director-manager research, Morningstar India.