Markets shake, money slows: Equity mutual funds see sharp dip in inflows

AI Summary

The Indian equity mutual fund market experienced a sharp decline in inflows in May due to geopolitical tensions and rising oil prices. Investors favored stability in systematic investment plans while withdrawing from debt schemes, reflecting cautious market sentiment.

Investor caution gripped the Indian mutual fund market in May, with equity fund inflows plummeting to a one-year low. Geopolitical tensions and rising oil prices dampened sentiment, leading to a significant drop in net inflows. While SIPs offered stability, the broader industry saw substantial outflows, primarily from debt schemes, as investors adopted a wait-and-watch approach.