Equity mutual funds witnessed a net inflow of over `10,000 crore in May, making it the highest infusion in 14 months, due to rally in stock markets on the back of declining Covid-19 cases and robust quarterly earnings.
This is also marks the third consecutive monthly inflow after `3,437 crore net inflow seen in April and `9,115 crore in March, data from the Association of Mutual Funds in India (Amfi) showed on Wednesday.Prior to this, equity schemes had consistently witnessed outflow for eight straight months from July 2020 to February 2021. "With stock markets moving to all time highs, investors continued their preference towards mutual funds and this trend could continue in the coming months," Gopal Kavalireddi, Head of research, FYERS, said. Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, said that significant improvement on the coronavirus situation with daily Covid-19 cases falling consistently, along with improving recovery rate, over the last few weeks, would have provided comfort to investors.
