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SIP inflows cross Rs 15,000Cr level for the first time

Aug 10, 2023

By: BlinkX Research Team

In July, the Assets under Management (AUM) for Systematic Investment Plans (SIPs) surged to Rs 8.32 trillion, a significant rise from June's Rs 7.93 trillion. This growth was complemented by a notable increase in SIP accounts, reaching a record high of 68 million. However, equity mutual funds experienced a decline of 11.7% in net inflows, amounting to Rs 7,626 crore in July. The decrease was primarily driven by outflows from large-cap funds, while small-cap funds maintained their momentum with strong net inflows of Rs 4,171 crore. An impressive highlight was the unprecedented surge in SIP contributions, which soared to a remarkable Rs 15,245 crore.

Conversely, debt funds displayed a turnaround after experiencing net outflows of over Rs 14,000 crore in June. July saw a remarkable inflow of Rs 61,440 crore. Among the inflows, liquid funds stood out, attracting around Rs 52,000 crore, and money market funds also garnered notable interest with an inflow of Rs 8,600 crore. In contrast, overnight funds faced an outflow of Rs 10,747 crore.

Additionally, changes were observed in fund categories: while index funds experienced a shift from a Rs 905-crore outflow in June to an inflow of Rs 1,179 crore, ETFs underwent a reversal, with a Rs 353 crore outflow in July following a substantial Rs 3,400 crore inflow the prior month. Gold ETFs, multi-asset allocation funds, and arbitrage funds attracted Rs 456 crore, Rs 1,382 crore, and Rs 10,074 crore inflows respectively.

The overall AUM for the industry reached Rs 46.37 trillion by the end of July, with the month's average AUM standing at Rs 46.27 trillion. The mutual fund (MF) sector achieved an all-time high of 151.4 million folios in July, compared to 149.1 million in June. Retail folios also reached a new high of 120.8 million in July, up from 119 million in June. N S Venkatesh, CEO of AMFI, emphasized the industry's 25% year-on-year growth as a testament to the increasing significance of mutual funds in the financial landscape.

Content source: Media reports