Ahead of election result, equity MFs see record Rs 34,697-cr inflows in May | Mutual Fund – Top Stories

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In April 2024, equity schemes had raked in close to Rs 19,000 crore | File image

Investors poured in record sums into equity mutual fund (MF) schemes in May despite the election result uncertainty. The Rs 34,697 crore net inflows into active equity funds last month is 22 per cent higher than the previous high of Rs 28,463 crore recorded in March 2022.

In April 2024, equity schemes had raked in close to Rs 19,000 crore. The nearly 2-fold month-on-month jump in May was supported by strong collections by the HDFC Manufacturing Fund during the new fund offering (NFO) period.

“Record inflows were aided by NFO listings and investors taking advantage of volatility to add equity schemes to their investments through SIPs as well as lumpsum,” said Manish Mehta, National Head, Sales, Marketing & Digital Business, Kotak Mahindra AMC.

The NFO raked in Rs 9,563 crore, the second-highest for an equity fund and third highest overall for an NFO. SBI MF’s balanced advantage fund holds the record for highest NFO collection at Rs 14,551 crore, followed by ICICI Prudential MF’s Rs 9,808 crore flexicap fund NFO.

The gross inflows through the systematic investment plan (SIP) route remained on the upward trajectory, surging to a new high of Rs 20,904 crore. In April, SIPs had brought in Rs 20,371 crore. The net SIP inflows stood at Rs 9,226 crore.

The strong momentum in inflows extended to shorter-horizon debt funds, hybrid funds and passive funds as well.

Debt funds together garnered net inflow of Rs 42,295 crore, while hybrid funds received Rs 17,991 crore. Passive funds raked in a net of Rs 15,655 crore, shows latest data released by the Association of Mutual Funds in India (Amfi).

Overall, the MF industry recorded net inflow of Rs 1.1 trillion last month. The flow of fresh investments along with some market-to-market gains led to a 2.8 per cent rise in total assets under management (AUM) to Rs 58.9 trillion. 

First Published: Jun 10 2024 | 2:12 PM IST

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