Inflows into the equity schemes of mutual funds increased 83 per cent last month to ₹34,697 crore compared with ₹18,917 crore in April as investors used the volatility in the equity market to pump in more money.

Interestingly, the net inflow into equity mutual funds hit a new high at ₹34,697 crore and surpassed the ₹30,000 crore mark for the first time.

Moreover, the thematic HDFC Manufacturing fund collected ₹9,563 crore through NFO last month.

Overall, thematic funds received an investment of ₹19,213 crore (₹5,166 crore). Small and mid-cap schemes attracted maximum flows of ₹2,724 crore (₹2,208 crore) and ₹2,605 crore (₹ 1,793 crore).

Gross SIP contribution

The gross SIP contribution increased by three per cent to ₹20,904 crore (₹20,371 crore), while the net SIP jumped 7 per cent to ₹9,226 crore (₹8,660 crore).

Venkat Chalasani, CEO, Association of Mutual Funds of India, said SIPs continue to attract higher inflows even as overall household savings have fallen to 5.4 per cent last fiscal from 7.6 per cent in FY’23.

The industry is working with the service provider to ensure that all payments received before 3 pm get the same-day NAV following the complaints received from investors about the June 4 glitch, he said.

Overall, MF assets under management surged further to ₹58.91-lakh crore (₹57.26-lakh crore) in May.

Himanshu Srivastava, Associate Director, Morningstar Investment Research, said the intermittent fall in equity valuations provided investors with a buying opportunity in a market that has largely witnessed a secular uptrend for a long time.

Investors continue to invest in mid- and small-cap funds, which can give exceptionally high returns in rising markets, but they can also fall equally hard in a bearish market, he added.

Madhu Nair, CEO, Union Mutual Fund, said equity-oriented schemes have crossed ₹25-lakh crore AUM for the first time as a result of strong net flows.

“The equity markets currently offer a good opportunity to invest, and we urge investors to stay invested in participating in the nation’s wealth creation while keeping their self-risk appetite in mind,” he said.

Viraj Gandhi, CEO, SAMCO Mutual Fund, said the AUM of mid-caps at ₹3.28-lakh crore for the first time surpassed ₹3.23-lakh crore of large caps, and this shows investors confidence.

Ashwini Kumar, Head of Market Data at ICRA Analytics, said while the market remained choppy last month, macroeconomic stability and policy continuity are expected to augur well for the mutual fund industry moving forward.