On accounts of the renewed strength in the Indian stock market in the month of May, investors have poured in more money into equity products. As per the report, the flows into equity mutual funds soared to a 14-month high, with investors pumping Rs 10,083 crores in the equity schemes.
With this, the total assets under management of the mutual fund industry increased up to Rs 32.99 lakh crore from Rs 32.42 lakh crore.
Notably, the bygone month marks the third straight month of net inflows. At the same time, investors pulled money out of debt schemes mainly because of lower returns.
The net investment in equity funds in May month is the highest since March 2020, when they received Rs 11,722 crore. Post this, investors had preferred to buy stocks themselves rather than allocating their money to mutual funds managers.
“So far, we have seen only tactical money flowing into mutual funds because of the broad-based rally. As the rally becomes selective going ahead, many investors are likely to participate through mutual funds than direct equity as fund managers use a professional approach,” said DP Singh, chief business officer, SBI Mutual Fund.