The mutual fund (MF) industry witnessed net inflows of Rs. 29,108 crore in May 2025, driven primarily by debt and hybrid fund inflows, according to data released by the Association of Mutual Funds in India (AMFI) on Monday. Despite positive market performance, equity mutual funds saw a notable decline in net inflows for the fifth consecutive month.
Equity Mutual Funds See 22 Per Cent Drop in Inflows
Actively managed equity mutual funds attracted Rs. 19,013 crore in net inflows in May, down 22 per cent from Rs. 24,269 crore in April. This decline comes even as benchmark indices posted gains, with the NSE Nifty50 rising 1.71 per cent and the BSE Sensex up 1.51 per cent in May. The trend reflects growing investor caution amid elevated market valuations and ongoing volatility.
Among equity categories, large-cap funds saw a sharp 53 per cent drop in inflows to Rs. 1,250 crore. Mid-cap and small-cap funds also experienced declines of 15.25 per cent and 19.64 per cent, with net inflows of Rs. 2,809 crore and Rs. 3,214 crore, respectively. Flexi-cap funds, which offer portfolio flexibility across market caps, recorded a 30.68 per cent fall in inflows to Rs. 3,841 crore. Sectoral and thematic funds saw modest gains to Rs. 2,052 crore, while multi-cap funds bucked the downtrend with a 17.54 per cent rise in inflows to Rs. 2,999 crore.
Record SIP Contributions Highlight Retail Interest
Monthly Systematic Investment Plan (SIP) contributions in May reached a new high of Rs. 26,688 crore, slightly up from Rs. 26,632 crore in April, underscoring sustained retail investor interest despite lump-sum equity inflow dips. May also saw the addition of around 59 lakh new SIP accounts.
Debt Mutual Funds Face Outflows, But Select Segments See Gains
Debt mutual funds experienced net outflows of Rs. 15,908 crore in May, reversing the massive Rs. 2.19 lakh crore inflows recorded in April. Liquid funds bore the brunt with Rs. 40,205 crore in redemptions, followed by Rs. 8,120 crore outflows from overnight funds. However, corporate bond funds attracted Rs. 11,983 crore in inflows, while money market funds recorded Rs. 11,223 crore net inflows, indicating a preference for short-term, lower-risk debt instruments.
Hybrid and Arbitrage Funds Make a Strong Comeback
Hybrid schemes bounced back with net inflows of Rs. 20,765 crore in May, compared to a Rs. 14,248 crore outflow in April. Arbitrage funds continued their strong momentum, pulling in Rs. 15,702 crore, as investors sought stability amid market uncertainties.
New Fund Offers (NFOs) Gain Traction
New Fund Offers contributed Rs. 4,170 crore in net inflows during May, a substantial jump from Rs. 350 crore in April. The bulk of new launches came from index funds and thematic ETFs, reflecting evolving investor preferences.
Overall Mutual Fund Industry AUM Hits Record High
Despite the equity inflow slowdown, the total assets under management (AUM) of the mutual fund industry rose by 3.14 per cent to touch a new high of Rs. 72.20 lakh crore in May, up from Rs. 69.99 lakh crore in April.
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
