New Delhi, PTI. Equity mutual funds have remained attractive to investors for the 15th consecutive month due to volatility in the stock markets, uncertainty created by the Russia-Ukraine war and high inflation. This is the reason why an investment of Rs 18,259 crore has been received in equity mutual funds in May. The largest share in this has been Systematic Investment Plan (SIP). According to data released by the Association of Mutual Funds in India (AMFI) on Thursday, investment in equity mutual funds stood at Rs 15,890 crore in April 2022. There has been a consistent net investment in equity schemes since March 2021. This reflects the positive sentiment among the investors.

Earlier, there was a net withdrawal for eight consecutive months from July 2020 to February 2021. During this period, Rs 46,791 crore was withdrawn from equity schemes. According to the data, in May, the maximum investment of Rs 2,939 crore was received among all types of equity based schemes including Flexi Cap Fund. Apart from this, Rs 2,200 crore has been invested in large cap, large and mid cap funds and sectoral funds.

AMFI chief executive N. s. Venkatesh said retail investors of mutual funds opted for SIPs and opted for equity and hybrid asset classes for their long term investments. The confidence of retail investors in the equity asset class reflects the fact that India’s growth story continues and is more solid and opportunity-oriented than other major economies. The Reserve Bank of India has projected India’s GDP growth at 7.2 per cent, despite rising inflation and interest rates and challenging macro-economic conditions. The exposure to Indian equities by domestic institutional investors has been excellent, even though there has been a sell-off by foreign institutional investors.

Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, says that continuous investment in SIPs is giving positive support to sales. Retail investors are investing in equity mutual funds amid volatility in the markets. New investments are coming in all categories.

Kavita Krishnan, Senior Analyst, Morningstar India, says that despite the volatility, the Indian equity market remains an attractive option amongst investors in emerging markets.

Edited By: Manish Mishra