SIP inflows cross Rs. 16,000 crore mark for first time
Systematic Investment Plans (SIPs) received a record-breaking inflow of Rs. 16,402 crore in September. This surpassed the previous record of Rs. 15,814 crore set in August. The surge is due to the growing interest of retail investors in the mutual fund industry in India. Additionally, the number of SIP accounts reached a new high, with 7.12 crore accounts in September compared to 6.9 crore in August.
ETF contributions nearly double, corporate bond funds decline
Exchange Traded Funds (ETFs) also saw a significant increase in inflows, jumping to Rs. 3,243 crore from Rs. 1,863 crore month-on-month. Dividend and ELSS funds experienced a boost as well, with contributions rising to Rs. 255 crore and Rs. 141 crore, respectively. However, corporate bond funds experienced a decline, losing Rs. 2,460 crore.
Equity mutual funds maintain steady inflows
Equity mutual funds continued to see net inflows in September for the 31st consecutive month, despite a slight decrease from August. The inflow remained strong at Rs. 13,857 crore. While both mid-cap and small-cap funds saw healthy inflows, their large-cap counterparts recorded outflows. Smallcap funds received Rs. 2,678 crore in September, lower than the previous month's Rs. 4,265 crore, and midcap funds decreased from Rs. 2,512 crore to Rs. 2,001 crore.
Experts weigh in on SIP growth and investor sentiment
G. Pradeepkumar, CEO of Union Asset Management Company, advised investors to take a staggered approach due to rich valuations in mid and small-cap stocks. NS Venkatesh, CEO of AMFI, expressed optimism about the industry's growth and emphasized its commitment to investor education and protecting investor interests. Gopal Kavalireddi, Vice President of Research at FYERS, noted that investors continue to rely on SIPs amid increasing uncertainty due to valuations, geopolitical tensions, and the upcoming quarterly earnings season.
SIP AUM and new registrations soar
SIP Assets Under Management (AUM) saw a major increase in September 2023, reaching Rs. 8.72 lakh crore, up from Rs. 8.47 lakh crore in August. Furthermore, the number of new SIP registrations skyrocketed to over 36 lakh in September, marking the highest-ever figure recorded. As per AMFI data, the cumulative AUM for the mutual fund industry stood at Rs. 46.58 lakh crore as of September 30.
