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Below the Perspective on AMFI Data by Mr. Sanjay Agarwal, Senior Director, CareEdge Ratings

“In May 2026, marking a reversal of last month’s pattern, inflows in hybrid funds dipped by nearly 50% sequentially and stood at Rs 10,560 crore. Flows into other schemes stood at Rs 362 crore, sharply lower than Rs 20,082 crore in due to outflows in gold and Other ETFs. The outflow could indicate some profit booking by investors after gold's strong run in the year. Meanwhile, Equity mutual funds inflows too dropped by nearly 40% sequentially to Rs 22,908 crore, a 12-month low. Even as the equity fund inflows have remained positive for over five consecutive years and show long term resilience of investor participation in market-linked instruments, the lower inflows could be attributed to near-term caution among investors amid significant market volatility as crude oil prices remain elevated and hover around the $100 a barrel mark. Macro headwinds and currency depreciation also contributed to the uncertainty with the Nifty50 declining by over 2% in May.

Debt mutual funds, on the other hand, saw net outflows of Rs 0.97 lakh crore, a reversal from the Rs 2.47 lakh crores inflows during April 2026 and which was also witnessed last May. The total AuM fell by 4.65% sequentially Rs 18.25 lakh crores. Over 70% of the outflows came from the shorter end of the curve i.e. from three categories namely, liquid, money market and overnight funds which could be attributed to seasonality of corporate treasury management and tax cycles.

The mutual fund industry’s assets under management marginally dipped sequentially by 0.4% to ?81.58 lakh crore in May 2026 with open ended schemes continuing to account for a bulk of the industry AuM.

New issuances continued to remain muted as only 13 new fund offerings were launched in May 2026, collectively mobilising Rs 471 crore which was nearly a half of the amount collected last month. A single value/ contra fund accounted for 57% of this mobilisation with the balance coming from passive funds, including index funds and ETFs.”

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