Hello investors! 
May was a record-setting month for Mutual Funds. SIPs touched new highs, Hybrid funds gained massive traction, Whether you’re investing long-term or trading short-term — there’s something in here for everyone.
Let’s take a look at what happened, and more importantly — what you should do next 
Industry Highlights.
- Mutual Fund AUM hit an all-time high of ₹72.20 lakh crore (+3.1% from April)
- Net Inflows: ₹29,108 crore — driven by Hybrid and Equity funds
- Markets stayed strong:
- Nifty 50: +1.7% in May
- BSE 500: +1.7–1.8% (in line with Nifty’s rise)
FII Inflows: Net equity inflow of roughly ₹20,000 crore (~$2.34 billion) (focus on large- & mid-cap)
DII Inflows: ₹66,000 crore into equity markets during May
- New Folios Added: 20.18 lakh
- Total MF Folios: 23.83 crore with bulk additions in equity and passive segments
- Equity + Hybrid schemes alone account for ~18.8 crore folios
Younger investors are entering — and diversifying across equity, passive, and hybrid categories.
Types of Mutual Funds and Their Performance
Key Highlights and Unique Observations:
Equity Funds
- Net Inflows: ₹19,013 Cr (↓ from April’s ₹24,269 Cr)
- AUM: ₹32.05 lakh Cr (+4.8% MoM)
- Top inflows by category:
- Flexi-cap: ₹3,841 Cr
- Small-cap: ₹3,214 Cr
- Mid-cap: ₹2,809 Cr
- ELSS saw net outflows: ₹678 Cr
Investors are moving towards flexible, diversified funds — and stepping away from seasonal tax-saver buys post-March.
Debt Funds
- Net Outflows: ₹15,908 Cr
- AUM: ₹17.54 lakh Cr (▼ 0.16% MoM)
- Trends: Strong inflows into liquid, overnight, and ultra‑short funds; G‑Sec yields dropped (~6.58% → ~6.36%), benefiting long-duration funds.
Investors are shifting from short-term parking to higher-yielding, longer-duration options.
Hybrid Funds
- Net Inflows**: ₹20,765 Cr (Highest ever!)
- AUM: ₹9.55 lakh Cr (+4.4% MoM)
- Category Highlights
- Arbitrage Funds: ₹15,702 Cr
- Multi-Asset Allocation: ₹2,927 Cr
Looking for balanced growth with lower volatility? Hybrid strategies are booming — especially Arbitrage funds for “smart parking".
Passive Funds
- Net Inflows: ₹5,526 Cr (55th straight month)
- AUM: ₹12.24 lakh Cr (+2.7% MoM)
- Where the money went:
- Other ETFs: ₹4,087 Cr
- Index Funds: ₹1,104 Cr
- Gold ETFs: ₹292 Cr (reversed 2-month outflow)
Simplicity + cost-efficiency = more Indians choosing ETFs & Index Funds.
SIP (Systematic Investment Plan) Insights
SIP investors showed strong conviction again in May. Here’s the funnel:
| Metric | May 2025 | Change vs Apr ’25 | YoY Change |
|---|---|---|---|
| SIP Contribution | ₹26,688 Cr (All-time high) | ▲ ₹56 Cr | ▲ ₹5,784 Cr |
| Active SIPs | 8.56 Cr | ▲ 17.75 lakh | ▲ 1.98 Cr |
| Total SIP Accounts | 9.06 Cr | ▲ 16.5 lakh | ▲ 2.30 Cr |
| New SIPs Registered | 59.15 lakh | ▲ 13.14 lakh | ▲ 9.41 lakh |
| SIPs Discontinued | 42.66 lakh | ▼ 119.66 lakh* | ▼ 1.3 lakh |
However, SIP discontinuations surged to 1.37 crore accounts, compared to 46.01 lakh new SIPs registered. Most investors stayed consistent. SIPs remain the most trusted way to build long-term wealth — no matter the market mood.
New Fund Launches (NFOs) – May 2025
19 new mutual funds launched this month, mobilising over ₹4,170 crore. Popular themes: Infra, Multi-cap, Gilt, and Smart Beta.
| Scheme | Fund House | Category |
|---|---|---|
| UTI Multi Cap Fund | UTI MF | Multi Cap |
| ICICI Prudential Quality Fund | ICICI Prudential | Thematic |
| Motilal Oswal Infrastructure Fund | Motilal Oswal | Sectoral |
| Groww Gilt Fund | Groww | Debt – Gilt |
| Canara Robeco Multi Asset Allocation Fund | Canara Robeco | Hybrid |
| Angel One Nifty 50 ETF | Angel One | ETF |
| Bajaj Finserv Nifty Next 50 Index Fund | Bajaj Finserv | Index Fund |
Happy Investing,
Saurav Parui.