Equity mutual fund inflows hit 1-year low in May, drop 22%: AMFI data | Mint

Net investments in equity mutual funds fell sharply in May, marking their lowest level in a year, according to data released by the Association of Mutual Funds in India (AMFI) on June 10. The total net inflow stood at ₹19,013.12 crore—a decline of21.66% compared to the previous month.

In May, equity mutual funds saw a sharp decline across categories:

Largecap funds witnessed a steep 53.19% fall in net inflows, dropping to ₹1,250.47 crore, reflecting a notable shift in investor preference away from blue-chip stocks.

Midcap funds registered a 15.25% dip, with inflows falling to ₹2,808.68 crore, indicating reduced enthusiasm for mid-sized companies.

Smallcap funds also saw inflows soften by 19.64%, down to ₹3,214.21 crore, as investors became more cautious amid market uncertainties. 

As far as debt schemes are concerned, there was a total redemption of ₹15,908 crore worth assets in May. Maximum redemption among debt schemes took place in liquid schemes ( ₹40,205 crore) and overnight funds ( ₹8,120 crore).

Hybrid and other schemes

Inflows into arbitrage funds rose 33 percent to 15,701 crore in May. Another category of hybrid schemes which saw increase in May over April data were multi asset allocation. Inflows into multi asset allocation saw a jump of 39 percent to ₹2,926 crore in May.

Inflows into other ETFs fell 78 percent month-on-month to ₹4,086 crore and inflow into index funds dropped to ₹1,104 crore (29 per cent decline). 

SIP data

The latest data shows that number of new SIPs registered in May 2025 stood at 59,14,788. The SIP AUM is at ₹ 14,61,360.31 crores for the month of May 2025 whereas SIP contribution stood at ₹26,688.22 crores. The number of contributing SIP accounts stood at 8.56 crores in May 2025.

“Equity inflows moderated to ₹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. The trend highlights the maturing investment behaviour among Indian investors. Notably, May also marked the industry’s 51st consecutive month of positive equity inflows,” says Venkat N Chalasani, Chief Executive, AMFI.

“The broader slowdown in equity inflows can be attributed to a mix of factors: a less buoyant equity market in May compared to April, concerns around global economic headwinds, and a possible consolidation phase or profit booking in the domestic equities following sharp rallies in the previous months and stretched valuations,” said Himanshu Srivastava, Associate Director- Manager Research, Morningstar Investment Research India.

“Investors continue to draw towards new sector and thematic funds. There were 2 funds launched in this category garnering INR 1,792 crore combined. The overall category received a net inflow of INR 2,052 crore, including the flows from the new funds,” added Srivastava.

Additionally, a total of 19 new schemes were launched during the month of May. These include one debt scheme, three equity funds, seven other ETFs and as many index funds. All these new schemes collectively raised ₹4,170 crore.

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