Flow into equity schemes in May is the highest since March 2020, when they received Rs 11,722 crore. Since then, flows have been receding with the equity fund category witnessing outflows between July and February as many retail investors preferred to buy shares themselves instead of allocating their money to fund managers.
With a booming stock market and a lack of better options to park money, retail investors continued to opt for mutual fund investments in May, show the data from the Association of Mutual Funds in India (AMFI).
Sebi has also initiated action against senior members of the AMC for sharp practices. All this set an example for other AMCs. Welcome as these steps are, there are some additional systemic issues to be taken into account.