The net inflows into equity mutual funds have witnessed a reduction in the month of May, data from Association for Mutual Funds in India (AMFI) reported. Equity mutual funds experienced net inflows worth Rs 5,256.52 crore in May, around 15% lower than the inflows collected in April. The inflows stood at Rs 6,212.96 crore in April.
However, the all-inclusive mutual fund industry witnessed a net inflow of Rs 70,813.4 crore, compared to an inflow of Rs 45,999.5 crore in the earlier this month. The increase was led by debt mutual fund categories and some blend fund categories. The summation of fresh inflows into debt mutual fund schemes estimated at around Rs 63,665.54 crore in May, compared to a total of Rs 43,431.55 crore in April.
According to several reports, “Despite economic unreliability and market irregularity, Investors depicting matured investment behaviour continue to poise the confidence in equity mutual funds, reflected by robust monthly systematic investment SIP endowment.
However, on the Debt side, investors seeking advantage of favourable reducing interest rates trend and move towards high quality AAA rated, has resulted in steady rise in the net flows. Credit Risk concerns have dwindled, keeping up to regulatory support, redemptions have decreased and investors would see allocating higher quantum of savings to high quality debt paper.”