ICCK

Retail mutual fund (MF) investors poured money in equity funds in May as the Lok Sabha election was rolling on, positioning themselves for a sustained growth. This took both monthly net flows into equity schemes and gross flows into systematic investments plans to record levels, industry players said.
In May, while all equity schemes recorded a net inflow of Rs 34,697 crore - a new all-time record - flows through the SIP route stood at Rs 20,904 crore, MF industry trade body Amfi said. SIPs accounted for 19% of the net flows. 

Net equity inflows also got a boost from collections through new funds that garnered Rs 10,140 crore. Of those, one thematic equity fund collected Rs 9,563 crore.

The record-breaking net inflows in equity funds in May reveal a strategic shift among investors towards higher growth opportunities, said Akhil Chaturvedi, ED & chief business officer, Motilal Oswal MF. "The surge was significantly driven by sectoral and thematic funds and robust investments in small and mid-cap segments. This suggests a strong investor belief in the potential for sector-specific and smaller companies' growth."
The month also set new records for several other categories within the fund industry. The industry's assets under management at Rs 58.9 lakh crore was a new record, so were the SIP AUM at Rs 11.5 lakh crore, total fund folios at 18.6 crore, retail folios at 14.9 crore and the number of SIP accounts at 8.8 crore, a release by Amfi noted.

"Political stability creates an environment conducive to sustainable economic growth, attracting investments and fostering long-term investments," said Venkat Chalasani, chief executive, Amfi. Chalasani also mentioned that the total equity AUM stood at about 43% of the industry's - nearly at par with the global average of about 46%.

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