Equity MF Inflows Decline 40% Month-On-Month To Rs 22,908 Crore In May

Net equity inflow witnessed a sharp slump of 40 per cent in May 2026 to Rs 22,908 crore, compared to Rs 38.440 crore equity inflow in April 2026.

However, SIP inflows remained resilient at Rs 30,954 crore, marking the third consecutive month above the Rs 30,000 crore level and underscoring continued retail investor confidence, according to Aditya Agrawal, CFA, Chief Investment Officer at Avisa Wealth Creators.

“Overall, while near-term risk appetite has softened, the strength of systematic investments indicates that long-term wealth creation through mutual funds remains firmly intact,” he added.

Debt Mutual Funds Witness Nearly Rs 97,000 Crore Outflow

Debt-oriented mutual funds reported a net outflow of Rs 96,948.51 crore in May, compared with net inflows of Rs 2.47 lakh crore in April. Liquid Funds

saw outflows of Rs 29,680.94 crore, while Money Market Funds witnessed withdrawals of Rs 24,691.74 crore. Overnight Funds also recorded outflows of Rs 15,524.77 crore.

The reversal indicates treasury and institutional investors pulled money from short-term debt categories after deploying large sums during April.

Hybrid Funds Continue To Attract Investors

Hybrid schemes received net inflows of Rs 10,560.24 crore in May, although lower than April’s Rs 20,565.24 crore. Multi Asset Allocation Funds remained the most preferred category within hybrid funds, garnering Rs 3,928.51 crore. Arbitrage Funds attracted Rs 5,697.90 crore during the month.

Gold ETFs See Investor Profit Booking

Gold ETFs witnessed net outflows of Rs 725.04 crore in May, reversing April’s inflow of Rs 3,040.31 crore. Other ETFs also recorded net outflows of Rs 620.22 crore, while index funds continued to receive positive inflows of Rs 943.26 crore.

Mutual Fund AUM Remains Above Rs 81 Lakh Crore

Despite softer inflows, the mutual fund industry’s total AUM stood at Rs 81.58 lakh crore at the end of May, compared with Rs 81.92 lakh crore in April. Open-ended schemes accounted for Rs 81.39 lakh crore of the industry’s assets.

Investor participation remained robust, with the total number of mutual fund folios increasing to 27.66 crore in May from 27.53 crore in April, indicating continued retail interest in mutual fund investments.

New Fund Launches Slow Down

AMFI data showed 13 new fund offerings (NFOs) mobilised Rs 471 crore during May, significantly lower than the 11 NFOs that collected Rs 828 crore in April. The largest mobilisation came from Motilal Oswal Contra Fund, which garnered Rs 267 crore.