May 2024’s record-breaking equity mutual fund inflows of Rs 34,697 crore reveal a strategic shift by investors towards higher growth opportunities. The surge was significantly driven by sectoral and thematic funds and robust investments in small and mid-cap segments. This suggests a strong investor belief in the potential for sector-specific and smaller companies’ growth. The significant decline in fixed-income inflows further highlights this pivot towards equities, reflecting an optimistic market outlook amidst current economic conditions.
