Equity mutual funds witnessed an inflow of over Rs 4,721 crore in May, making it the highest in six months, mainly on account of strong retail participation.

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In comparison, they had seen net inflow of Rs 4,438 crore in April.

Prior to that, equity mutual funds (MFs) had witnessed a pull out of Rs 1,370 crore in March. Moreover, moderation in inflow was seen between December and February mainly due to volatile equity markets.

Equity schemes had received funds to the tune of Rs 3,644 crore, Rs 2,914 crore and Rs 2,522 crore in December, January and February, respectively.

According to the data from Association of Mutual Funds in India (Amfi), equity funds, which also include equity-linked saving schemes (ELSS) saw net inflow of Rs 4,721 crore last month.

This was the highest net inflow since November, when equity mutual funds witnessed an inflow of Rs 6,379 crore.

Market experts attributed the rise in inflow to investment in systematic investment plans (SIPs) and strong participation from retail investors.

SIP is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly