Indian equity mutual fund inflows hit a 13-month low in May, driven by market softness, valuations, and global macro risks.

• Nifty 50 rose 1.7% in May amid $2.34 billion foreign buying, despite fund inflow declines.
• Small and mid-caps surged 8.7% and 6.1%, boosted by foreign inflows and defense stock gains.
• Funds hold record 2.15 trillion rupees in cash, awaiting better valuations amid market uncertainty.