Inflows in equity schemes hit six month high at Rs 4,700 crore

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Despite steep volatility in the first half of May, followed by a surge in share prices, small investors continued to put money in equity mutual fund schemes.

The net inflow in these schemes was Rs 4,721 crore, highest in six months. With this and the rise in stocks, the total of assets under management (AUM) of these schemes reached a high of Rs 4.15 lakh crore.

The categories which saw positive flows, along with equity, were income funds, balanced funds and exchange-traded funds (other than gold ETFs).

However, liquid and money market funds saw a massive outflow of Rs 69,399 crore in May. Gilt funds (which primarily invest in government securities) saw investors redeeming units worth Rs 837 crore, showed data from the Association of Mutual Funds in India.

Such a large outflows from liquid & money market funds (primarily invested in by large investors -- institutions and companies) negated the positive flows of the equity segment. As a result, the month saw a net outflow of Rs 58,185 crore.

The sector's AUM as on end-May was Rs 13.81 lakh crore, from Rs 14.21 lakh crore at end-April.

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