Investment fund
The game of ups and downs continues in the Indian stock market. Every day, thousands of investors make profits from the market. At the same time, some investors are investing in mutual funds with the goal of reducing risk. Last month, when the market boomed, record investments in mutual funds were also seen. According to data from the Association of Mutual Funds of India (AMFI), May saw a huge surge in investment in equity mutual funds, which reached a record level of Rs 34,697 crore. This jump represents an increase of 83.42 percent compared to the previous month.
There was a jump of 80%
This growth in investment in open-end equity funds has been positive for the 39th consecutive month. This sustained growth underlines investor confidence in the stock market despite fluctuations and uncertainties. This investment in open-end variable income funds shows the good performance of sector and thematic funds. There was a net investment of Rs 19,213.43 crore in these funds in May. Let us tell you that sector and thematic funds are open-ended variable income funds, in which 80% of the money is invested in stocks of a specific theme.
Condition of small, mid and large cap funds?
In addition to sector and thematic funds, small-cap funds also continued to attract strong interest from investors. There has been a huge investment of Rs 2,724.67 crore and Rs 2,605.70 crore in small and mid-cap funds respectively. While investor interest in large-cap funds was lower. This category recorded a nominal net investment of Rs 663.09 crore during the month, which is much lower than that of small and midcap funds. This dramatic rise in equity mutual funds comes after a slight decline in April 2024, when inflows declined by 16.42 per cent to Rs 18,917.08 crore.
SIP continues to increase
Investment through Systematic Investment Plan (SIP) increased to Rs 20,904 crore in May, showing excellent growth from Rs 20,371 crore in April. The figure of Rs 20,000 crore was crossed for the first time in April 2024. Which was also repeated in May. Meanwhile, there was a total net investment of Rs 17,990.67 crore across equity, debt and commodity hybrid fund categories. A net investment of Rs 12,758.12 crore has also been seen in the arbitrage fund category.
