Equity mutual funds in India experienced unprecedented growth in May 2024, with inflows skyrocketing to an all-time high of ₹34,697 crore. This represents a remarkable 83% increase from April, driven by investor interest in thematic funds and market corrections that presented attractive buying opportunities.

The latest data from the Association of Mutual Funds in India (AMFI) reveals that this surge marks the 39th consecutive month of net inflows into equity funds, highlighting sustained investor confidence in the equity market.

In addition to the robust equity inflows, Systematic Investment Plan (SIP) contributions also reached new heights. Monthly SIP contributions rose to ₹20,904 crore in May, up from ₹20,371 crore in April, continuing a trend of inflows exceeding ₹20,000 crore for the second consecutive month.

The substantial rise in equity mutual fund inflows underscores the positive sentiment among retail investors, who are increasingly turning to equity funds to build wealth and achieve long-term financial goals. Thematic funds, in particular, have gained traction due to their focus on specific sectors or themes, offering targeted investment opportunities.

Market experts attribute this surge to intermittent market corrections, which have created opportune moments for investors to enter or increase their stakes in the market. These corrections often make valuations more attractive, prompting savvy investors to capitalize on the dips.

The consistent growth in SIP contributions further demonstrates the growing popularity of disciplined investment strategies among retail investors. SIPs allow investors to invest a fixed amount regularly, averaging out market volatility and fostering a habit of regular investing.

As the equity market continues to offer promising returns, the trend of strong inflows is expected to persist. The sustained interest in equity mutual funds and the steady rise in SIP contributions indicate a robust and resilient investment culture among Indian investors, poised to drive further growth in the mutual fund industry.

Key Highlights:

• Record Inflows: Equity mutual funds saw inflows of ₹34,697 crore in May, the highest on record.
• Significant Growth: This marks an 83% increase from the previous month’s inflows.
• SIP Contributions: SIP inflows reached ₹20,904 crore, marking the second consecutive month above ₹20,000 crore.
• Thematic Funds: Increased interest in thematic funds contributed significantly to the inflow surge.
• Consistent Growth: May marks the 39th consecutive month of net inflows into equity funds.

The data underscores the resilience and attractiveness of equity mutual funds as a preferred investment vehicle for Indian investors, reflecting a strong and ongoing commitment to market participation and wealth creation.