Despite the decline, equity mutual funds continued to attract net inflows for the 63rd consecutive month, extending a streak that began in March 2021.
May’s inflow of ₹22,897 crore was the lowest recorded in the past 12 months.
Equity schemes had received net inflows of ₹23,568 crore in June 2025, ₹42,672 crore in July, ₹33,417 crore in August, ₹30,408 crore in September, ₹24,672 crore in October, ₹29,894 crore in November, ₹28,035 crore in December, ₹24,013 crore in January 2026, ₹25,965 crore in February, ₹40,366 crore in March and ₹38,426 crore in April.
The moderation in flows was visible across key equity categories.
Large-cap funds attracted net inflows of ₹1,593 crore in May, down from ₹2,524.6 crore in April. Mid-cap fund inflows declined to ₹4,385 crore from ₹6,551.4 crore, while small-cap funds received ₹4,946 crore compared with ₹6,885.9 crore in the previous month.
Hybrid funds also saw a slowdown, with net inflows falling to ₹10,560 crore from ₹20,565.2 crore in April.
The industry’s total assets under management (AUM) stood at ₹81.58 lakh crore at the end of May, compared with ₹81.92 lakh crore in April.
Among debt categories, credit risk funds attracted net inflows of ₹49.5 crore, sharply lower than ₹1,317.7 crore in April. Corporate bond funds, meanwhile, recorded net outflows of ₹7,010 crore in May against net inflows of ₹6,196.5 crore in the previous month.
Liquid funds witnessed net outflows of ₹29,681 crore in May, compared with net inflows of about ₹1.65 lakh crore in April, while exchange-traded funds (ETFs) recorded net outflows of ₹620.2 crore against inflows of ₹10,754.9 crore a month earlier.
Gold ETFs also saw a reversal in flows, posting net outflows of ₹725 crore in May compared with net inflows of ₹3,040.3 crore in April.
ELSS funds recorded net outflows of ₹651 crore, higher than the outflow of ₹567.7 crore reported in April. Dividend yield funds saw net outflows of ₹97.5 crore compared with outflows of ₹20.6 crore in the previous month.
Collections through new fund offers (NFOs) also moderated. NFO inflows stood at ₹471 crore in May compared with ₹828 crore in April, a month that did not witness any major fund launches.
Systematic investment plan (SIP) contributions remained robust at ₹30,954 crore during the month, staying above the ₹30,000-crore mark despite the slowdown in overall equity inflows.
