BFSI funds gave best returns in May, SIP strong!

Banking, financial services and insurance (BFSI) thematic funds were the best performers in the mutual fund investment universe in the month of May. These funds gave a return of 5.5 percent and received an investment of Rs 1,013 crore. The main reason for this was the presence of a large number of large-cap stocks in these funds.

According to the report of Valaam Capital, an interesting situation was seen in the month of May. Micro-cap funds performed the best with a return of 5.7 per cent, but despite this, investor interest remained limited and relatively less investment came into these funds, while

According to the report, small-cap funds gave a return of 3.4 percent in May and investments worth Rs 2,229 crore came in. Whereas mid-cap funds gave a return of 1.6 percent and an investment of Rs 3,898 crore was made in them.

In contrast, large-cap funds returned only 1.5 per cent in the month of May, the lowest among the categories. Despite this, investments of Rs 8,565 crore came in these funds, which is almost four times that of small-cap funds and more than double that of mid-cap funds.

Apart from this, flexi-cap funds gave returns of 2.1 per cent and attracted investments of Rs 5,350 crore. At the same time, Rs 2,617 crore was invested in large and mid-cap funds, while their return was 1.9 percent.

The report said that due to pre-determined SIP instructions by investors in large-cap and flexi-cap index based schemes, retail investors’ money continues to flow into the largest and more liquid stocks of the market.

This is why even though some smaller funds are performing better, there is a steady inflow of investment into large-cap funds. Large-cap funds currently remain the largest category in the Indian mutual fund industry with assets under management (AUM) of over Rs 10.5 lakh crore.

A total investment of Rs 30,954 crore was made through SIP (Systematic Investment Plan) in May, which is 16 percent more than last year. The number of active SIP accounts in the country has increased to 9.64 crore.

The total assets under management of the Indian mutual fund industry remained stable at Rs 81.58 lakh crore at the end of May. Along with this, net investment (net inflow) was recorded in equity mutual funds for the 63rd consecutive month.

According to the report, foreign institutional investors (FIIs) sold shares worth Rs 32,963 crore in May, while in contrast, domestic institutional investors (DIIs) bought shares worth Rs 82,165 crore, providing strong support to the market.

Public sector bank (PSU bank) funds gave a return of 6.9 percent in May and attracted investments of Rs 436 crore. Whereas private bank funds gave a return of 6.5 percent and an investment of Rs 329 crore was made in them. A total investment of Rs 765 crore came in both the categories.

Transportation and Logistics Funds gave a return of 4.4 percent in May with investments worth Rs 194 crore. Apart from this, Auto Funds also recorded a strong return of 4.2 percent, making this category also the center of attraction among investors.