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AMFI Data Decoded: The stock market volatility and geopolitical uncertainty have hit the mutual fund market as the equity MF inflows declined nearly 40% on a month-on-month basis to Rs 22,907 crore in May, as per the Association of Mutual Funds in India (AMFI) data released on Wednesday, June 10. Additionally, the gold exchange-traded funds (ETFs) saw their first-ever monthly outflow in 13 months.
The equity inflow declined 40% from Rs 38,440 crore recorded in April and the overall mutual fund industry reported a net outflow of Rs 64,131 crore in May against a net inflow of Rs 3.22 lakh crore in April. The outflow was driven by a withdrawal of Rs 96,948 crore from debt-oriented schemes.
“From a broader portfolio perspective, a strategic realignment is clearly underway. Debt funds experienced sharp net outflows of Rs 96,948.51 crore, reversing the institutional treasury surge seen at the start of the financial year. Even alternative allocations faced pressure, with Gold ETFs swinging to a net outflow of Rs 725.04 crore,” explained Archit Doshi, Senior Vice President at PL (Prabhudas Lilladher) AMC.
“Debt-oriented schemes witnessed significant redemptions of approximately ₹97,000 crore in May, led by outflows from the shorter end of the curve, particularly liquid, overnight, and money market funds. The withdrawals were driven by tighter liquidity conditions, which pushed short-term yields higher,” said Umesh Sharma, CIO-Debt, The Wealth Company Mutual Fund
AMFI MF Data: Small Cap, Large Cap, Flexi Cap Inflows
Out of all the eleven categories, flexi cap emerged as one of investors’ favourite choice. Among eleven sub categories, flexi cap funds remained investors’ favourite as they attracted the highest inflows of Rs 5,175 crore in May compared with a record-high inflow of Rs 10,147 crore in April. Small Cap funds received inflows of Rs 4,945 crore, followed by a mid cap funds at Rs 4,385 crore. On a month-on-month (MoM) basis, inflows into small cap and mid cap funds declined by 28% and 33%, respectively.
AMFI Data: Gold ETF Attracts Outflows In May
Gold Exchange Traded Funds (ETFs) saw a sharp reversal in trend as the category saw net outflows of Rs 725 crore in May which marked its first monthly outflow in 13 months. “Neither equity nor hybrid and even debt funds have not been spared. Investors appear to be now fatigued with the markets which has been completely sideways for past 2 years. SIPs have also dipped continuously for past 2 months. The trend could lead to more stoppages with even the FIIs selling off from India. The next 2 months will be critical for the Indian markets as we would see impact of monsoon as well as 1st quarter results for FY 26-27,” stated Juzer Gabajiwala – Director-Ventura.