New Delhi Inflows into open-ended equity mutual funds (MFs) remained in the green for the 15th consecutive month and rose 17% to 17% sequentially. 18,529 crore in May despite volatile markets, according to data released by Association of Mutual Funds in India (Amfi).
Investors were reinvesting their savings in fixed income asset classes in the liquid and overnight categories and in safe government securities schemes during May. This has come because of rising interest rates.
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Systematic Investment Plan (SIP) inflows have increased 12,286 crore in May as against 11,863 crore in the previous month, reflecting the continued confidence of retail investors in the expected investment.
This is the ninth consecutive month of SIP inflows, which is more than 10,000 crores, a trend that started in September 2021 10,351 crore. Amfi data also shows that 19.74 lakh SIPs were registered in May.
“Retail investor confidence in the equity asset class stems from India’s growth story which is more promising than other major economies. Moreover, domestic investment inflows into Indian equities have remained strong despite outflows from foreign institutional investors,” said NS Venkatesh, Chief Executive Officer, Amfi.
In the equity or growth category, flexi-cap, large-cap and large and mid-cap schemes emerged as the top three in net inflows. In the hybrid category, dynamic asset allocation, balanced hybrid and aggressive hybrid and arbitrage schemes saw positive flows.
Gopal Kavalireddy, Head of Research, FYERS, a technology-focused stock broking and investment platform, said, “The Balanced Hybrid Fund/Aggressive Hybrid Fund category had net inflows up 97%, indicating that people may reinvest investments based on their risk profile and opportunities. allocated from.” Net outflow of open-ended debt oriented funds observed 32,722 crore as compared to last month’s net inflow 54,756 crore, Amphi data showed. Money market funds outflow observed 14,598 crores.
Preeti Rathi Gupta, Founder, LXME, a financial platform for women, said, “This could be an indication of short-term funding requirements of investors due to the current market scenario of rising repo rates and inflation rates.”
The total assets under management (AUM) of the mutual fund industry was down 2.1% on a month-on-month basis 37.3 trillion. There was a negative growth of 2.5% in the AUM of debt and equity schemes.