Equity mutual funds experienced a remarkable surge in inflows, reaching a record high of 34,697 crore rupees in May. This surge marks an 83.42 percent increase from the previous month, setting a new milestone, according to data from the Association of Mutual Funds of India on Monday. Inflows into open-ended equity funds remained in the positive zone for the 39th month in a row.

The surge in net investments into open-ended equity funds was fueled by sectoral and thematic funds, which saw net buying of 19,213.43 crore rupees during May. Further, inflows remained strong in smaller-caps, receiving net inflows of 2,724.67 crore rupees, and mid-cap funds saw net inflows of 2,605.70 crore rupees. Investor interest remained largely lukewarm in large-cap funds, as the category saw net investments of 663.09 crore rupees during the month.