Market Volatility Hits Equity Funds: May Inflows Slip to One-Year Low on Iran War Fears

The Indian mutual fund landscape saw a sharp reversal in May 2026. Data from the Association of Mutual Funds in India (AMFI) confirms that net inflows into equity mutual funds dropped to their lowest level in a year. Total equity inflows fell by 40% month-on-month, settling at INR 22,908 crore ($2.40 billion).