File Photo: People watch results of the general elections on a screen outside the Bombay Stock Exchange (BSE) in Mumbai, June 4, 2024.
Reuters Photo
By Ashutosh Joshi
Inflows into Indian equity funds surged to record high last month, with retail investors brushing aside a spike in stock volatility before election results.
Mutual funds received 34,700 crore rupees ($4.2 billion) of inflows in May as investors plowed money for a 39th month, according to data released by the Association of Mutual Funds in India.
Equity investments by individual investors in India are on a rise as returns beat traditional investments such as fixed deposits and bonds. The inflows came even as concerns over a stable government after elections drove up volatility in markets.
Monthly recurring plans emerged as the most popular product among retail investors, adding almost $2.5 billion of flows on net basis to stocks.
“While recent data has shown a dip in household savings in India, systematic investment plans have continued to pick up,” AMFI Chief Executive Venkat Chalasani said on a conference call.
HDFC Manufacturing Fund, which was introduced during the month, received more than 9,500 crore rupees of subscriptions.