Net Equity Inflow Declines For Fifth Straight Month In May; AMFI Data Shows Most Of Fund Pools See Outflows

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Posted by AI on 2025-06-10 14:24:23 | Last Updated by AI on 2026-06-26 17:44:08

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Indian mutual fund net equity inflows dropped for the fifth month in a row, falling 22% to Rs 19,013 crore in May, despite a strong recovery in the markets, amid a volatile macro environment and concerns of a slowdown in the economy. This is the lowest level of inflows since November 2021.

According to data released by the Association of Mutual Funds in India (AMFI) on July 11, 2025, the total average assets under management (AUM) of the industry stood at Rs 39.41 lakh crore in May, a monthly growth of 0.15%.

Equity-oriented funds, including ETFs, accounted for Rs 8,97,683 crore of total AUM, down 0.01% from the previous month. Within equity-oriented schemes, ETFs saw an outflow of Rs 11,934 crore, while active funds saw an inflow of Rs 9,03,478 crore.

Overall, Indian mutual funds saw net inflows of Rs 82,418 crore in 2022, lower than Rs 1,14,35,iser the previous year.

"The sentiment of investors continues to be impacted by the volatile macro environment. Despite the attractive valuation, there is a cautious approach in terms of investing in equities," said AMFI Director Nilesh Shah.

However, he remained optimistic about the long-term outlook for the industry. "We believe that investors should not time the market in these volatile times and instead focus on systematic investing to benefit from the upside in the long run," he added.

Overall, Indian mutual funds saw net inflows of Rs 82,418 crore in 2022, lower than Rs 1,14,35,iser the previous year.

Despite the backdrop of geopolitical tensions and a weak global backdrop, India's economic prospects remain strong, driven by robust government capital expenditure, robust export growth, and the country's demographic profile.

The industry is also excited about the growth prospects for UCITs (Undertakings for Collective Investment in Transferable Securities) that are regulated by SEBI.

SEBI Chairman Ashish Kumar Yadav said recently that the Indian mutual fund industry is well-positioned to grow further over the next few years. "I believe that the UCITs framework, with its robust regulatory safeguards, will help the mutual fund industry to scale new heights in the years to come," he said.

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