May 2025 Mutual Fund Report: A Mixed Landscape
Introduction: Shifting Tides in Investment
The mutual fund data for May 2025 reveals a complex and evolving investment landscape. While inflows into equities saw a significant decrease, the industry's total Assets Under Management (AUM) soared to a new record high.
This divergence highlights a strategic shift among investors, who are navigating geopolitical tensions and global market volatility by leaning towards diversified and debt-oriented strategies.
Key Highlights for May 2025
₹72.20 lakh crore
Record High Total AUM (+3.86% MoM)
₹19,013 cr
Equity Inflows (-21.7% MoM)
₹40,205 cr
Outflow from Liquid Funds
₹26,688 cr
Record SIP Contributions (+28% YoY)
Composition and AUM Surge
The impressive rise in total AUM was predominantly driven by market performance rather than new investments. Of the total gain, a staggering 87% was due to price appreciation in existing assets.
AUM Gain Breakdown (May 2025)
Category‑Wise AUM Breakdown
This table details the performance across different active equity fund categories. Note how categories like ELSS and Value/Contra saw net outflows, yet their AUM grew significantly due to market gains (Price Accretion > 100%).
| Category | Net Inflow (₹ Cr) | AUM Closing (₹ Cr) | Total Accretion (₹ Cr) | Price Accretion (₹ Cr) | % via Price Accretion |
|---|---|---|---|---|---|
| ELSS | –678.11 | 246,293.05 | 7,242.43 | 7,920.54 | 109.36% |
| Dividend Yield | –20.82 | 32,177.14 | 844.23 | 865.05 | 102.47% |
| Value/Contra | –92.28 | 196,339.39 | 5,482.79 | 5,575.07 | 101.68% |
| Sectoral/Thematic | 2,052.48 | 492,403.81 | 22,064.76 | 20,012.28 | 90.70% |
| Small Cap | 3,214.21 | 336,005.21 | 28,837.10 | 25,622.89 | 88.85% |
| Mid Cap | 2,808.68 | 408,092.68 | 25,008.97 | 22,200.29 | 88.77% |
| Large Cap | 1,250.47 | 383,666.59 | 9,146.88 | 7,896.40 | 86.33% |
| Focused | 947.18 | 155,870.44 | 5,647.39 | 4,700.21 | 83.23% |
| Large & Mid Cap | 2,690.69 | 287,392.50 | 14,134.08 | 11,443.39 | 80.96% |
| Flexi Cap | 3,841.32 | 471,974.48 | 17,306.57 | 13,465.25 | 77.80% |
| Multi Cap | 2,999.29 | 195,159.76 | 12,026.95 | 9,027.67 | 75.06% |
| Active Equity (Total) | 19,013.12 | 3,205,375.05 | 147,742.16 | 128,729.04 | 87.13% |
Fund-Flow Snapshot
Equity Inflows: Large, Mid & Small Cap (MoM)
Inflows moderated across major equity categories compared to April, indicating a more cautious investor stance.
Key Category Flows (May 2025 vs April 2025)
A notable trend is the massive swing in Liquid funds from huge inflows in April to significant outflows in May. Conversely, Corporate Bond funds and Gold ETFs saw renewed interest.
| Fund Category | May 2025 (₹ Cr) | April 2025 (₹ Cr) |
|---|---|---|
| Corporate Bond Fund Inflow | 11,983.3 | 3,458.42 |
| New Fund Offer Inflow | 4,170 | 350 |
| ELSS Fund Inflow | 678 | 372 |
| Gold ETF Funds Inflow | 292.0 | –5.82 (outflow) |
| Dividend Yield Fund Outflow | –20.82 | 51.47 (inflow) |
| Credit Risk Fund Outflow | –248 | –301.7 |
| Liquid Fund Outflow | –40,205.4 | 118,000 (inflow) |
SIP Resilience & Retail Participation
Despite market jitters, the backbone of the Indian mutual fund industry—the retail investor—showed remarkable commitment. Systematic Investment Plans (SIPs) continued their strong growth trajectory, highlighting a disciplined, long-term approach to wealth creation.
SIP Contribution (YoY Growth)
Type-Specific Patterns
Hybrid Funds
A 46% increase in inflows to ₹20,765 cr signals a strong demand for diversified strategies that balance risk and reward.
Large, Mid, and Small-Cap Funds
- Large-cap funds: Inflows dropped 53.2% to ₹1,250.47 cr, their lowest in a year, reflecting caution towards blue-chip stocks.
- Mid-cap funds: Showed careful net inflows but maintained strong NAVs.
- Small-cap funds: Continued to attract significant inflows of ₹3,214.21 cr.
Passive and Other Fund Types
Passive investing continues to gain traction, with impressive year-over-year growth in AUM for ETFs and Index funds.
- Gold ETFs: AUM surged by 97.1% YoY to ₹62,453 cr.
- Index Funds: AUM grew by 30.9% YoY to reach ₹3 lakh cr.
- Debt Funds: Showed strong growth, particularly in Long-Term (+53.2% YoY), Ultra Short Duration (+32.5% YoY), and Money Market (+44.5% YoY) categories.