India equity fund inflows drop 40% in May, SIPs 30,000 crore

India's equity mutual funds attracted net inflows for the 63rd consecutive month in May 2026, though the pace of investment slowed sharply amid global economic uncertainty and volatile markets. According to data released by the Association of Mutual Funds in India (AMFI), equity schemes received net inflows of approximately Rs 22,907 crore last month, a decline of roughly 40 percent from April's Rs 38,440 crore. This marks the steepest month-on-month drop in three years and the lowest monthly inflow in a year.

The moderation in flows coincided with heightened geopolitical tensions, including uncertainty surrounding U.S.-Iran peace negotiations, and concerns over elevated crude oil prices impacting the energy-import dependent economy. The mutual fund industry's overall assets under management (AUM) dipped marginally to Rs 81.58 lakh crore in May from Rs 81.92 lakh crore in April.

Despite the slowdown in lump-sum investments, systematic investment plan (SIP) contributions remained a pillar of strength, underscoring the resilience of retail participation. SIP inflows stood at Rs 30,954 crore in May, staying above the Rs 30,000 crore mark for the fourth consecutive month and...