How Did AUM for Equity Mutual Funds Reach Rs 72.2 Lakh Crore in May?
Click to start listening
Synopsis
New data reveals a remarkable rise in the Assets Under Management (AUM) for equity mutual funds, reaching Rs 72.2 lakh crore in May. This growth underscores the resilience of the market and the ongoing interest from investors. What does this mean for the future of mutual fund investments?
Key Takeaways
- AUM for equity mutual funds reached Rs 72.2 lakh crore in May.
- 4.85% increase from April's AUM.
- Open-ended schemes represent 99.6% of total AUM.
- 11.3 lakh new folios added in May.
- Flexicap funds led inflows with Rs 3,841 crore.
New Delhi, June 10 (NationPress) The Assets Under Management (AUM) for equity mutual funds surged to Rs 72.2 lakh crore in May, reflecting a 4.85 percent increase from approximately Rs 70 lakh crore in April, as reported by the Association of Mutual Funds in India (AMFI) on Tuesday.
This rise is primarily driven by robust market performance, with the Nifty and Sensex showcasing impressive returns throughout May.
The consistent market momentum and disciplined SIP investments continue to bolster AUM growth, according to Amit Bivalkar, Founder Director at Sapient Finserv.
The AUM figure for May reflects a modest gain from April, yet marks a significant 12 percent increase compared to May 2024.
“Open-ended schemes remain dominant, constituting 99.6 percent of the overall AUM, indicating their persistent appeal to investors,” stated Narender Singh, smallcase Manager and Founder of Growth Investing.
During this month, nearly 11.3 lakh new folios were registered, highlighting a growing interest from a new demographic of investors in mutual funds.
While the funds raised in May were comparable to those in April, a significant increase in redemptions from INR 32,479 crore to INR 37,591 crore suggests that numerous investors opted to secure profits from recent market gains.
Even though equity markets maintained their upward trend in May, the growth was somewhat subdued, prompting many investors to take a more cautious approach.
“In terms of categories, flexicap funds topped the inflow charts with net inflows of Rs 3,841 crore, reflecting investors’ preference for versatile funds that can invest across various market segments, allowing them to capitalize on opportunities across large, mid, and small-cap stocks,” explained Himanshu Srivastava, Associate Director-Manager Research at Morningstar Investment Research India.
The small-cap category followed closely, garnering net inflows of Rs 3,214 crore, continuing to attract investors.
This segment, despite its volatility, remains appealing due to strong domestic sentiment and long-term return potential.
However, the flow of investments into small-cap and mid-cap funds has cooled compared to April, indicating a cautious stance amidst market valuations and global uncertainties.
“Investors should be mindful of the inherent risks associated with small and mid-cap segments when making investment choices. It’s vital to align their investments with their risk tolerance and overall asset allocation, avoiding excessive exposure,” advised Srivastava.
Point of View
It is imperative to recognize the significant growth in the AUM for equity mutual funds as a positive indicator of market confidence. This trend highlights a shift in investor behavior, demonstrating an increasing appetite for equity investments amidst fluctuating market conditions. Our commitment at NationPress is to keep our readers informed and prepared for the evolving investment landscape.
NationPress
11/06/2025
Frequently Asked Questions
What is AUM in mutual funds?
AUM or Assets Under Management refers to the total market value of assets that a mutual fund manages on behalf of its investors.
What contributed to the rise in AUM for May?
The increase in AUM is primarily attributed to strong market performance, especially the returns generated by the Nifty and Sensex, along with sustained SIP investments.
How do open-ended schemes perform in the market?
Open-ended schemes dominate the market, making up a significant portion of total AUM, due to their flexibility and appeal to a wide range of investors.
What trends are seen in small-cap and mid-cap investments?
Despite their volatility, small-cap and mid-cap funds continue to attract investor interest, although recent inflows have cooled due to market uncertainties.
What should investors consider when investing in these segments?
Investors need to be cautious of the risks associated with small and mid-cap investments and should align their decisions with their risk tolerance and overall asset allocation.
