July: Inflow in MF SIPs at record high of Rs 15,245 cr
Investors are betting big on systematic investment plans or SIP to generate long-term wealth with the monthly flow in the mutual fund industry through the route reaching an all-time high of Rs 15,245 crore in July.
The record high SIP numbers came despite the equity mutual funds registering a 12 per cent month-on-month decline in inflow to Rs 7,626 crore in July, data with the Association of Mutual Funds in India (Amfi) showed on Wednesday.
"The surge in retail investors' interest in mutual funds has translated into impressive inflow across scheme categories. The star performer this month has been SIP, with an impressive over 33 lakh new SIP accounts registered and a record Rs 15,215 crore of monthly contribution," Amfi CEO N S Venkatesh said.
The monthly SIP contribution in July was way higher than Rs 14,734 crore inflow seen in June and Rs 14,749 crore in May, which was the previous high.
Interestingly, the inflows through SIPs have been above Rs 13,000 crore since October 2022. With this, the total inflow has reached nearly Rs 58,500 crore in the first four months (April-July) of the current fiscal. This came following an inflow of over Rs 1.56 lakh crore in the preceding financial year (2022-23).
SIP is an investment methodology offered by mutual funds wherein an individual can invest a fixed amount in a chosen scheme periodically at fixed intervals, say once a month, instead of making a lump sum investment. The SIP installment amount can be as small as Rs 500 per month.
Mutual fund industry mainly depends on SIPs for inflows with equity funds continuing to witness the 29th consecutive month of net inflows. However, the inflow dropped to Rs 7,626 crore in July from Rs 8,637 crore in the preceding month. "The drop in net inflow in July from June could be attributed to some investors booking profit with markets trading near all-time highs. Some investors would have also chosen to stay on the sidelines and wait for some rationalisation to set in before they invest," Himanshu Srivastava, Associate Director - Manager Research at Morningstar India, said.
