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Below the Comment on May AMFI data by Saurabh Jain, Equity Head, Research- Fundamentals, SMC Global Securities 

Despite the temporary moderation in mutual fund inflows during May, the Indian equity market demonstrates remarkable underlying strength and resilience. The total assets under management growing to Rs 71.93 lakh crore with a healthy 3% monthly increase showcases the market's robust foundation and investor confidence in India's long-term growth story. The sustained interest in flexi-cap funds, which attracted the highest inflows at Rs 3,841 crore, reflects investors' strategic approach to capitalizing on opportunities across market capitalizations. Small-cap funds continuing to receive substantial inflows of Rs 3,214 crore indicates strong faith in India's emerging companies and entrepreneurial ecosystem. Particularly encouraging is the 46% surge in hybrid fund inflows to Rs 20,765 crore, demonstrating sophisticated investor appetite for balanced investment strategies. The launch of 19 new open-ended mutual fund NFOs raising Rs 4,170 crore signals continued innovation and product development in the market. This temporary consolidation phase actually presents an excellent opportunity for long-term investors to enter India's dynamic equity markets at attractive valuations, supported by the country's strong economic fundamentals and growth prospects.

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