Sectoral and thematic mutual fund inflows saw a significant drop in May, falling by 67%. This decline suggests investors are moving away from concentrated bets towards diversified strategies. Experts believe this trend reflects a natural shift during market uncertainty. While some sectors show strong performance, others lag, making sector selection challenging.

Among the 11 sub-categories, flexi cap funds remained investors favourite, attracting the highest inflow of Rs 5,175 crore in May, compared with a record-high inflow of Rs 10,147…

The volatile equity markets and cloud over economic growth have taken its toll on inflows into mutual fund schemes including that of SIP in May.

Mutual fund equity inflows drop 40% month-on-month to a one-year low amid market volatility and economic uncertainty.