MF Investors SIP Strategy Intact, Reduce Bets On Equity Funds In Uncertain Times
MF industry total assets under management reached a new all time high of Rs 72.19 lakh crore as against Rs 69.998 lakh crore in April,2025
By : Ravi Ranjan Prasad
Update: 2025-06-11 06:47 GMT
Mumbai: Equity mutual fund inflows dropped to 12 month low of Rs 19,013 crore in May month though flows remained positive for 51st consecutive month, according to monthly data released by Association of Mutual Funds in India. In April equity mutual fund flows stood at Rs 24,269.26 crore
However, systematic investment plan or SIP flows remained resilient with all time high monthly inflow of Rs 26,688 crore in May as against 26,632 crore in the previous month. MF industry total assets under management reached a new all time high of Rs 72.19 lakh crore as against Rs 69.998 lakh crore in April,2025 as equity market recovery in May boosted equity AUM.
"Indian mutual fund industry has crossed Rs 70 lakh crore in AUM reaching new highs, driven by resilient retail participation and consistent SIP inflows. The growth of SIP is particularly encouraging, indicating a shift towards disciplined, long-term investment," said Venkat N Chalasani, chief executive, AMFI.
"Equity inflows moderated to Rs 19,013 crore this month, reflecting cautious investor sentiment amidst market volatility. Such phases often witness a natural reallocation towards hybrid and arbitrage schemes, offering a more balanced approach during uncertain times," Chalasani said.
"Equity oriented schemes experienced a 22 per cent drop in net inflows (due to higher redemptions while fund mobilisation remained static). Hybrid schemes, however, experienced a 46 per cent increase in net inflows( Rs 20,765 crore) over the previous month. This trend perhaps reflects investors responding to the volatility in the market over the past few months," said Harshad Patwardhan, CIO, Union Asset Management Company.
Among hybrid category arbitrage fund attracted maximum inflows of Rs 15,701.97 crore followed by multi asset allocation fund of Rs 2,926.80 crore.
Among equity funds flexi cap fund category attracted maximum inflows of Rs 3,841.32 crore, but it was lower than Rs 5541.71 crore in April, 2025.
Inflows in Gold ETF remained subdued at Rs 291.91 crore due to high redemptions( Rs 974.28 crore).In April month Gold ETF had seen negative flows of Rs 5.82 crore due to redemptions worth Rs 1669.08 crore.
Debt mutual funds saw a sharp reversal in May, registering net outflows of Rs 15,908 crore compared to net inflow of over Rs 2.19 lakh crore in April.
"This decline can largely be attributed to heavy redemptions in the Liquid and Overnight Fund categories, which together saw net outflows of over Rs 48,325 crore. These categories typically see high institutional flows and are more sensitive to short-term liquidity needs and treasury management decisions," said Nehal Meshram, analyst, Morningstar India.