Equity mutual fund flows rise 17% to Rs 5,407 crore after Modi's triumph

Mid- and small-cap schemes mop up half of the equity flow

The mutual fund (MF) industry, which has been grappling with its debt exposure, saw some respite in terms of equity flows in May. The net inflows in these schemes rose 17 per cent to Rs 5,407 crore as Narendra Modi’s win in elections improved investor sentiments.

Moreover, there were signs of higher risk appetite among investors as mid- and small-cap schemes collectively garnered close to half of the flows that came into the equity schemes. The combined tally for the two categories was Rs 2,687 crore. The flows in mid-cap schemes (Rs 1,272 crore) were nearly 2.6x of levels seen