Despite volatile stock markets, monthly contribution into Systematic investment plan (SIP) touched an all-time high of Rs 12,976.3 crore in September, according to the data released by Association of Mutual Funds in India (AMFI). This compares with the previous month’s contribution into SIP of Rs 12,693.4 crore.
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Significantly, equity inflows continued to be positive during the month. The total equity inflows jumped 130 per cent to Rs 14,099.73 crore in September as compared to inflows of Rs 6,119.58 crore in August.
“SIP numbers look healthy with the highest ever contribution at Rs 12,976.34 crore a month. We are hopeful that we will touch Rs 13,000 crore per month mark in contribution in the coming months,” AMFI’s Chief Executive N S Venkatesh told reporters on Monday.
The number of SIP accounts increased to 5.83 crore as of September 30, 2022 from 5.71 crore as of August 31, 2022.
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The industry’s net AUM stood at Rs 38.42 lakh crore compared to Rs 39.33 lakh crore last month, the data showed. Hybrid fund saw outflows of Rs 2,687.97 crore in the reporting month as compared to outflows of Rs 6,601.56 crore in August.
Arbitrage fund witnessed outflows of Rs 4,022.78 crore as against outflows of Rs 8,548.08 crore last month. The debt oriented schemes also saw outflows of Rs 65,372.4 crore in September compared to inflows of Rs 49,164.2 crore in the previous month. Liquid funds saw net outflows of Rs 59,970.3 crore in the reporting month.
Investors pulled out Rs 8,453.8 crore from the ultra short duration fund and Rs 11,232 crore from the money market fund.
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Venkatesh said the debt fund schemes are affected by hike in interest rates and once interest rate peaks, the flows into debt funds will start coming back. Since May this year, the Reserve Bank of India has raised the repo rate by 190 basis points to 5.90 per cent.
In the last few months, markets reacted to inflationary factors and events like rate hikes. However, small investors have shown consistent faith in mutual fund investments, he said. “They see SIP as wealth accumulation and wealth creation over a longer term. Investors must stay focused on their goals and continue to invest in mutual funds and not lose the opportunity,” he noted.
The net inflows in gold exchange traded funds was Rs 330 crore in September as against outflow of Rs 38 crore in August. During September, the mutual fund industry launched 21 schemes and mobilised funds worth Rs 8,374 crore, the data showed.
