Equity mutual fund investors are fast gaining confidence on the market outlook and are stepping up their investments. Equity-oriented mutual funds reported the highest monthly net inflows of Rs 10,083 crore in May, almost thrice than that of last month and the highest since February last year. For the past three months, these funds have reported net inflows after net outflows for eight consecutive months. Redemption, too, fell significantly in May as compared with the previous month, according to data from Association of Mutual Funds in India. Equities gain momentum So, why are investors once again pumping money into equity mutual funds? The markets touching new highs on the back of robust quarterly earnings, chances of faster pick-up in economic activities and declining Covid-19 cases after the second wave have led to renewed confidence. Moreover, with the performance of debt funds below par— the category reported net outflows of Rs 44,512 crore in May led by liquid, overnight and corporate bond funds—investors who were staying on the sidelines are slowly getting back.