Banking, financial services, and insurance (BFSI) thematic funds stood out in May, recording a 5.5% return and attracting Rs. 1,013 crore in inflows. Micro-cap funds surprisingly emerged as the best performers with a 5.7% return, despite weak inflows. In contrast, large-cap funds had the weakest monthly return at 1.5% but garnered significant inflows of Rs. 8,565 crore.
Flexi-cap funds, delivering a 2.1% return, attracted Rs. 5,350 crore, while mid-cap funds gained 1.6% with Rs. 3,898 crore in inflows. Large and Mid-cap funds collected Rs. 2,617 crore at a 1.9% return. The report highlighted that large-cap and flexi-cap index trackers automatically direct retail savings to the most liquid market segments, irrespective of monthly performance.
SIP contributions reached Rs. 30,954 crore in May, marking a 16% increase from the previous year, with 9.64 crore active accounts. The mutual fund industry in India maintained assets worth Rs. 81.58 lakh crore by the end of May, with equity funds witnessing their 63rd consecutive month of positive inflows. Foreign institutional investors (FIIs) sold equities worth Rs. 32,963 crore, while domestic institutional investors purchased equities worth Rs. 82,165 crore.
PSU Bank funds surged by 6.9% and collected Rs. 436 crore, while Private Bank funds rose by 6.5% and drew Rs. 329 crore, collectively amassing Rs. 765 crore. Transportation and logistics funds recorded a 4.4% gain with Rs. 194 crore in inflows, while auto funds saw a 4.2% increase.
