Inflows into equity mutual funds fell to its lowest level in 13 months to ₹19,013 crore in May as investors continued to exercise caution in a volatile market, book profit and manage risks.

This also marks the fifth consecutive month of decline in inflows in equity funds and a nearly 22 per cent drop in net inflow on a month-on-month basis from ₹24,269 crore registered in April, according to data released by the Association of Mutual Funds in India (Amfi) on Tuesday.

“Equity inflows moderated this month. Such phases often witness a natural reallocation towards hybrid and arbitrage schemes, offering a more balanced approach during uncertain times. May also marked the industry’s 51st consecutive month of positive equity inflows,” said Venkat N. Chalasani, chief executive, Amfi.

“The Indian equity markets remained muted throughout May, weighed down by a confluence of geopolitical concerns, profit-booking, and market consolidation,” said Viraj Gandhi, CEO, Samco MF.

Within the equity fund categories, flexi cap funds recorded the highest inflows, attracting ₹3,841 crore. However, equity-linked saving schemes saw an outflow of ₹678 crore. Value funds and dividend yield funds also saw an outflow of ₹92 crore and ₹21 crore, respectively. Large-cap funds witnessed inflows of ₹1,250 crore in May, a decline from ₹2,671 crore in April.

Mid-cap funds saw inflows reducing to ₹2,808 crore in May compared with ₹3,313 crore in the previous month. Similarly, small-cap funds attracted ₹3,214 crore in May, down from ₹3,999 crore in April.

Systematic investment plan (SIP) contributions remained robust, registering a record ₹26,688 crore in inflows in May, higher than ₹26,632 crore in the preceding month.

“Large-cap allocations have cooled sharply as investors are recalibrating their risk-reward expectations. The modest decline in small and mid-cap inflows suggests that the appetite for growth stories remains intact,” said Anoop Vijaykumar, head of equity, Capitalmind MF.

Debt funds saw an outflow of ₹15,908 crore. “Debt-fund outflows look tactical—likely driven by treasury cash-management around quarter-end and an RBI policy overhang—rather than a shift away from fixed income,” said Vijaykumar.

Hybrid funds saw inflows of ₹20,765 crore primarily due to inflows of ₹15,701 crore into hybrid schemes. Gold ETFs recorded a net inflow of ₹292 crore in May.