SIP and safe: Equity MF inflows strong despite market turmoil in May

Systematic investment plans help garner flows of Rs 12,286 crore in May, up Rs 423 crore in April.

The turbulence in the market has had little impact on investor flows into equity-oriented schemes, going by the evidence. In May, equity funds witnessed net inflows of Rs 18,529 crore—the fifteenth straight month of positive flows. They were higher than the 12-month average of Rs 15,442 crore despite a ban on new fund offers (NFOs).

Last month, the domestic markets saw a sharp sell-off due to sustained outflows from foreign portfolio investors (FPIs) as inflation, the disruption caused by the Russia-Ukraine war, and lockdowns in China triggered risk-off bets.

“Gone are the days when investors would redeem the money as markets corrected.