Blitz Bureau
NEW DELHI: Banking, financial services and insurance (BFSI) funds led the investment universe in May, returning 5.5 per cent and attracted Rs. 1,013 crore in inflows due to prevalence of large cap stocks, a report said on June 20.
The report from Vallum Capital noted an anomaly where micro‑cap funds became May’s best performers, returning 5.7 per cent, but saw weak inflows and small‑caps returned 3.4 per cent and attracted Rs 2,229 crore.
Large‑cap funds, by contrast, returned just 1.5 per cent — the weakest cap‑wise monthly return — yet pulled in Rs 8,565 crore in inflows, nearly four times what small‑caps received and more than double mid‑caps.
The mid‑caps gained 1.6 per cent with Rs 3,898 crore of inflows. Flexi-cap funds, which delivered 2.1 per cent, drew Rs 5,350 crore, while Large and Mid-cap funds collected Rs 2,617 crore at 1.9 per cent.
The report noted that standing instructions on large‑cap and flexi‑cap index trackers mechanically route retail savings to the largest, most liquid end of the market, regardless of where monthly performance was generated.
Consequently, India’s biggest fund category by AUM large-cap, at over Rs 10.5 lakh crore continues to accumulate capital even in months where smaller, higher-performing categories are left undersubscribed.
SIP contributions hit Rs 30,954 crore for the month, 16 per cent higher than a year ago, with 9.64 crore active accounts.
India’s mutual fund industry held firm at Rs 81.58 lakh crore in assets as of May-end, and equity funds recorded their 63rd consecutive month of net positive inflows.
