Market volatility has not deterred equity mutual fund investors, as inflows continue to grow!

Even though the markets are in a downturn, equity funds continue to get increased inflows. Continue reading to learn more.

Equity markets have been under pressure due to a variety of domestic and global concerns. Indeed, the markets are still seeing massive sell-offs today. Furthermore, Foreign Institutional Investors (FII) have been net sellers for a long time.

Despite this, we have witnessed sustained net purchasing from Domestic Institutional Investors (DII). Furthermore, equity mutual fund inflows were Rs 18,529 crore in May, up 17 per cent from the previous month's inflow of Rs 15,890.

Debt mutual funds, on the other hand, had negative growth. In May, debt mutual fund inflows were negative Rs 32,722 crore as opposed to Rs 54,757, representing a negative surge of 160 per cent.

Inflows to solution-oriented funds and overseas Fund of Funds (FoF) grew by 43 per cent and 293 per cent, respectively. However, the situation is substantially different in terms of Assets Under Management (AUM).

Although index funds saw a 6 per cent month-on-month (MoM) decline in inflows, AUM increased by 5 per cent, while other categories experienced a 6 per cent decline in AUM growth.

According to statistics supplied by the Association of Mutual Funds in India (AMFI), the total Systematic Investment Plan (SIP) accounts in May 2022 stood at 5.48 crore.

In May 2022, the total amount received via SIP was Rs 12,286 crore, an increase of 4 per cent month-on-month and 39 per cent year-on-year (YoY). This obviously demonstrates that investors are tenacious and meticulous when it comes to investing.

In May 2022, the entire industry AUM was Rs 37.22 lakh crore, a 2 per cent decrease from the previous month. Equity and debt mutual funds contributed significantly to this de-growth.