Ahmedabad: According to the Association of Mutual Funds in India (AMFI) data, the equity mutual funds have hit a record high of net inflows to the tune of INR 34,697 crore in May 2024, witnessing an 83% jump over April 2024. The same month’s AMFI data suggests that within the equity mutual funds segment, the thematic or sectoral funds category saw highest inflows of INR 19,213.4 crore from investors across the country. Another interesting takeaway from the May 2024 AMFI data is that the monthly investments via SIPs crossed the INR 20,000-crore mark for the second successive month.

The size of mutual funds assets has continued to grow in India, as investors have reposed their faith in various equity schemes. Tata Mutual Fund witnessed a similar trend in Gujarat, where investors have shown preference for equity mutual fund schemes. Investors in Gujarat have invested INR 819 crore from Jan-Apr 2024 in various equity schemes of Tata Mutual Fund, of which INR 410.4 crore came from investors in Ahmedabad.

During the same period, i.e., Jan-Apr 2024, investors from Ahmedabad invested INR 66 crore into the sectoral/thematic funds of Tata Asset Management, vis-à-vis INR 195 crore invested in the same category by investors across Gujarat.

Latest AMFI data showcases continued interest amongst pan-India investors in mid and small-cap segments. The mid-cap and small-cap indices have outperformed the large-cap index in the 1-year period. Going by the May 2024 AMFI data, mid-cap funds recorded net inflows of INR 2,724.67 crore, while small-cap funds saw INR 2,605.70 crore in net inflows in May 2024. On the other hand, with a net inflow of INR 663 crore, investor interest in large-cap funds was bit tepid. The broader market is likely to be balanced going forward with risk-reward in large-caps becoming relatively attractive.

Chandraprakash Padiyar, Senior Fund Manager (equities), Tata Asset Management said, “The macroeconomic indicators, broad-based corporate earnings growth and robust banking/corporate sector health are the key factors contributing to long term positive trend for the markets. We believe manufacturing for India and the world can be the next trigger for the Indian economy. Barring the banking sector, short-term valuations across market segments are on the higher side and could impact immediate 12-month return performance. It is recommended to continue to use the SIP route to invest for the long term.”

According to the AMFI data, as of May 2024, the average industry AUM of investors from Gujarat stood at INR 404,493.35 crore, with a growth rate of 50% over the past two years. While Tata Asset Management has a network of 100 branches across India, it has six branches in Gujarat.