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Summary: May 2026 saw muted flows for the Indian mutual fund industry, as per AMFI. We break down net flows by mutual fund category, along with total SIP inflows for the month.
May painted a rather sombre picture of the Indian mutual fund industry, as most fund categories saw inflows decline, according to AMFI’s (Association of Mutual Funds in India) latest disclosures.
While total mutual fund AUM (assets under management) fell slightly from Rs 81.92 lakh crore in April to Rs 81.58 lakh crore in May, the industry recorded net outflows of Rs 0.64 lakh crore, compared with net inflows of Rs 3.22 lakh crore in the previous month.
Further, SIP inflows fell around 1 per cent to Rs 30,954 crore from Rs 31,115 crore in April, though the number remains above the Rs 30,000-crore mark.
Where equity money went, and where it didn't
Net inflows into open-ended equity mutual funds fell to a one-year low of Rs 22,908 crore in May 2026, down from Rs 38,440 crore in April, a drop of roughly 40 per cent. The headline figure stayed comfortably positive, but the pace of fresh money slowed across almost every category.
In both months, nine of the 11 equity categories recorded net inflows, while two saw outflows. Flexi-cap funds led the field, drawing in just Rs 5,176 crore in May, down from Rs 10,148 crore in April. Small-cap, mid-cap and large & midcap funds were the other big draws in both months. Dividend yield funds and ELSS (tax-saving) schemes were the two consistent outliers, posting net outflows in April and May alike.
Debt funds swing from inflow to outflow
The sharpest reversal came in debt. Open-ended debt funds took in Rs 2.47 lakh crore in April but shed Rs 96,949 crore in May, a swing of about Rs 3.44 lakh crore. April's surge was led by liquid funds (Rs 1.65 lakh crore). By May, all but one category had turned negative, with credit risk funds (Rs 49 crore) the lone exception. Liquid, money market and overnight funds saw the heaviest May withdrawals, a pattern often linked to month-end corporate cash movements.
Hybrid funds stay positive
Hybrid funds remained in inflow territory, though the total roughly halved, from Rs 20,565 crore in April to Rs 10,560 crore in May. Arbitrage and multi-asset allocation funds did most of the heavy lifting in both months. All six hybrid categories were positive in May, whereas conservative hybrid and equity savings funds had seen small outflows in April.
Gold ETFs' flows slip
Gold ETFs flipped from a Rs 3,040 crore inflow in April to a Rs 725 crore outflow in May. However, solution-oriented funds (retirement and children's schemes) stayed positive in both months, at Rs 307 crore in April versus Rs 270 crore in May.
New fund offers raise less
New fund offers (NFOs) mobilised just Rs 471 crore across 13 schemes in May, down from Rs 828 crore across 11 schemes in April. Equity NFOs accounted for Rs 267 crore in May, up from Rs 30 crore in April.
Also read: FIIs flee, rupee at record low: India woos foreign money
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