India’s mutual fund assets rose to Rs 58.6 trillion in May, inching closer to record Rs 10 trillion in less than a year, data from the Association of Mutual Funds in India (AMFI) said.
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India’s mutual fund assets rose to Rs 58.6 trillion in May, inching closer to record Rs 10 trillion in less than a year, data from the Association of Mutual Funds in India (AMFI) said.
While the fund industry took five decades to build the first Rs 10 trillion of assets since its inception in 1964, it has added the last Rs 9 trillion of assets in less than six months.
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The AMFI data said that inflows into equity mutual funds rose 83% month-on-month to Rs 34,967 crore last month, with investors continuing to prefer small- and mid-caps.
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Net equity mutual fund inflows in May are the highest on record since April 2019, when AMFI started reporting monthly mutual fund flows in the current format, it added.
Domestic equity mutual funds have seen net inflows every month since February 2021, aggregating Rs 5.58 trillion, well above net foreign inflows over the same period.
The surge in net investments into open-ended equity funds was fuelled by sectoral and thematic funds, which saw net buying of Rs 19,213.43 crore during May.
HDFC Manufacturing Fund garnered Rs 9,563 crore from investors during its new fund offer (NFO) period.
In May, despite concerns over high valuations, inflows into small-caps rose 23.4% to Rs 2,725 crore, while mid-cap fund inflows increased 45.3% to Rs 2,606 crore.
As per the data, the investment via systematic investment plans (SIPs) rose to Rs 20,904 crore in May against Rs 20,371 crore in April.
Monthly investments via SIPs had topped the Rs 20,000-crore landmark for the first time ever in April 2024.
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