Equity mutual fund inflows dropped sharply in May to a 12-month low. The decline came amid concerns over the West Asia conflict. Systematic Investment Plan flows stayed largely steady.
Equity mutual fund inflows fell 40% in May to ₹22,908 crore. This marked the steepest drop since May 2023. Investors cut back on lump-sum investments due to rising geopolitical tensions in West Asia. Systematic Investment Plan flows remained robust with only a marginal decrease. The overall trend reflected caution among investors facing uncertainty. The data highlights how external conflicts can influence domestic investment patterns. SIP contributions continued to provide stability despite the broader slowdown.
