Equity mutual funds saw a record inflow of Rs 34,697 crore in May 2024, surpassing the previous high of Rs 28,463 crore recorded in March 2022 . This significant jump reflects investor confidence in the Indian equity market, despite some uncertainties like elections.
Here’s a breakdown of the key factors driving this surge:
Robust SIP inflows: Systematic Investment Plans (SIPs) continued their positive streak, contributing a significant portion of the inflows. This indicates investors’ commitment to long-term wealth creation through disciplined investing.
Sectoral/Thematic funds: These funds, focusing on specific sectors or themes, witnessed a whopping 272% increase in inflows compared to April 2024. This suggests investors’ interest in capitalizing on specific growth opportunities.
Positive market outlook: Despite minor fluctuations, the Indian equity market seems promising to investors, leading to continued inflows into equity mutual funds.
This trend highlights the growing popularity of mutual funds as an investment avenue for Indian investors.
