MF Data Snapshot: Equity Funds Log Inflows For 3rd Straight Month In May

Here’s how the mutual fund industry performed in May this year.

According to the data released by the Association of Mutual Funds of India (AMFI), the mutual fund industry saw an overall outflow of ₹38,601.87 crore in May across all segments, after recording an inflow of ₹92,906.45 crore in April.

The assets under management (AUM) of the mutual fund industry rose to ₹33.05 lakh crore in May-end from ₹32.38 lakh crore in April-end. The jump in the overall AUM of the industry was supported by Equity Funds as inflow to the funds surged to ₹10,082.98 crore in May against an inflow of ₹3,437.37 crore in April. May is the third straight month to log inflows in equity funds.

After seeing an outflow of ₹157.7 crore in April, Multi Cap Fund clocked an inflow of ₹1,954.19 crore in May. On top of this, Mid Cap Fund, Small Cap Fund, Focused Fund, Sectoral/Thematic Funds, Flexi Cap Fund all recorded inflows of over ₹1,000 crore each in May. The inflows to Large Cap Fund and Large & Mid Cap Fund rose to ₹937.42 crore and 844.71 crore, respectively. The Dividend Yield Fund recorded a massive inflow of ₹660.33 crore last month against an outflow of ₹3 crore in April.

The chart below shows the equity flows of the last three months i.e., March (₹9,115.12 crore), April (₹3437.37 crore) and May (₹10,082.98 crore).

Debt Funds, which saw a massive inflow of ₹1,00,903.48 crore in April, recorded a huge outflow of ₹44,512.04 crore in May. Liquid Funds witnessed an outflow of ₹45,447.36 crore last month against an inflow of ₹41,507.47 crore in April. Overnight Fund logged an outflow of ₹11,573.01 crore in May against ₹18,492.07 crore in April. Funds such as Ultra Short Duration Fund, Low Duration Fund, Money Market Fund, Floater Fund saw a big plunge in inflows. On the other hand, Medium to Long Duration Fund booked a huge inflow of ₹847.47 crore last month against an inflow of ₹99.3 crore in April.

Coming to Hybrid Schemes (mix of equity and debt), inflows in Conservative Hybrid Fund surged to ₹394.87 crore in May against an inflow of ₹184.06 crore in April. However, inflows in Dynamic Asset Allocation/Balanced Advantage Fund plunged considerably to ₹1,362.95 crore last month from ₹1,700.32 crore in April. Arbitrage Fund also saw a decline in inflow as May’s inflows fell to ₹4,520.88 crore against April’s inflows, which stood at ₹7,245.15 crore.

Under other schemes, inflows into Other ETFs climbed to ₹5,379.76 crore in May against an inflow of ₹2,536.70 crore in April. Fund of funds investing overseas also saw a big jump in inflows to ₹2,423.75 crore in May against an inflow of ₹695.34 crore in April.

The chart depicts the total contribution made by Systematic Investment Plans (SIPs) in the last six months.

In May 2021, inflows via Systematic Investment Plan (SIP) rose marginally to ₹8,818.90 crore from ₹8,590.89 crore in April.

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