In May, equity mutual funds saw a 22% decrease in inflows, amounting to Rs 19,013 crore. Large-cap funds witnessed a significant 53% drop, while mid-cap and small-cap funds experienced declines of 15% and 20%, respectively. Flexi-cap funds remained the most attractive, securing the highest inflows at Rs 3,841 crore, closely followed by small-cap funds.

Equity Mutual Fund Inflows Decline

Equity mutual funds experienced a 22% decrease in inflows, reaching Rs 19,013 crore in May, down from Rs 24,269 crore in April. Among the 11 sub-categories, large-cap, mid-cap, and small-cap funds saw inflows drop by 53%, 15%, and 20%, respectively, during the same period. This decline marked the fifth consecutive month of reduced inflows in Indian equity mutual funds.

Fund Inflows by Category

Large-cap funds received Rs 1,250 crore in May, down from Rs 2,671 crore in April. Mid-cap funds recorded inflows of Rs 2,808 crore in May, compared to Rs 3,313 crore in April. Small-cap funds saw an inflow of Rs 3,214 crore in May, down from Rs 3,999 crore in the previous month. Flexi-cap funds continued to attract the highest inflows at Rs 3,841 crore in May, closely followed by small-cap funds.

Outflows and Other Fund Categories

During the same period, ELSS funds, value/contra funds, and dividend yield funds experienced outflows of Rs 678 crore, Rs 92 crore, and Rs 20 crore, respectively. Debt mutual funds also saw an outflow of Rs 15,908 crore in May, compared to an inflow of Rs 2.19 lakh crore in April. Corporate bond funds recorded the highest inflow at Rs 11,983 crore, followed by money market funds with Rs 11,223 crore. Liquid funds reported the highest outflow of Rs 40,205 crore in May.

• Hybrid funds experienced a 46% month-on-month increase in inflows, receiving Rs 20,765 crore in May.
• Arbitrage funds recorded the highest inflow at Rs 15,701 crore.
• Multi-asset allocation funds received Rs 2,926 crore in May, marking a 39% increase from April.

Overall, mutual fund inflows declined by nearly 89% month-on-month to Rs 29,572 crore in May. The total assets under management (AUM) stood at Rs 71.93 lakh crore, showing a 3% growth from April. Around 19 open-ended mutual fund NFOs were launched in May, collectively raising Rs 4,170 crore. Sectoral and thematic funds accounted for the most significant portion of the total NFO collection.