Mutual fund (MF) investors' ability to invest in listed stocks was crippled by large public floats in May, a report by Business Standard noted.
It informed that as per an analysis done by Edelweiss Alternative Research, state-owned insurance major LIC and Softbank-backed logistics major Delhivery attracted MF investments worth ₹4,065 crore and ₹2,418 crore in May.
Overall, MFs invested ₹29,400 crore in the month of May even as overseas investors sold shares worth ₹42,900 crore, noted the BS report, adding that HDFC Bank, Reliance Industries and ICICI Bank were the other counters that saw substantial MF investments.
HDFC Bank witnessed the highest investment from MFs, worth ₹4,314 crore, followed by LIC and then RIL at ₹2,445 crore. Meanwhile, ICICI Bank also saw investments worth ₹2,346 crore, as per the report.
On the other hand, Kotak Mahindra Bank, SAIL and UPL saw new outflows from domestic funds. The top 5 stocks that saw the worst outflows by MFs include Kotak Bank worth ₹630 crore, followed by SAIL at ₹565 crore, UPL at ₹491 crore, HDFC Life at ₹477 crore and Indian Oil at ₹437 crore, added the report.
Overall, inflows into equity mutual funds recovered in the month of May, rising 16 percent MoM to ₹18,529 crore despite uncertainties around the ongoing geopolitical crisis, rising inflation and consistent foreign outflows. This is the fifteenth straight month of inflows in equity mutual funds.
However, the overall mutual fund schemes including debt and equity, saw outflows in May worth ₹14,598.6 crore in May against an inflow of ₹16,193.7 crore in April, data from the Association of Mutual Funds in India (AMFI) showed on Thursday. This was mainly due to major outflows in ultra-short duration funds, short-duration funds, and money market funds.
Category-wise, all equity-oriented mutual fund categories continued to see inflows in May. Flexi cap funds saw the highest net inflow of ₹2,939 crore. Meanwhile, large-cap, large & mid-cap funds and sectoral/thematic funds also saw inflows of over ₹2,200 crore each.
However, multicap funds witnessed the least investments among all categories.
