NEW DELHI: Systematic investment plans (SIPs) contributions in the Indian mutual fund industry touched a new high of Rs 17,073.30 crore in November 2023, according to data released by the Association of Mutual Funds in India (AMFI).
In October, SIP contribution was recorded at Rs 16,928 crore. The total number of SIP accounts also reached to an all-time high of 7.44 crore last month compared to 7.30 crore accounts in October 2023. The SIP assets under management (AUM) grew to 9.31 lakh crore for November as against 8.59 lakh crore in October. The total AUM for the mutual fund industry also advanced to Rs 49.04 lakh crore.
“The AUM has been increasing steadily, reflecting the growing trust and confidence of investors...We believe this trend will continue through December as well and the numbers will continue to remain positive,” said NS Venkatesh, CEO of AMFI. He added, “We reiterate that investors should stay focused on goal-based investing through SIPs.”
G. Pradeepkumar, CEO, Union Asset Management Company, said the SIP flows continue to be good and could act as a powerful counterforce against any serious FPI outflows. Pradeepkumar, however, added that given the rich valuations in mid and small cap stocks, they are advising investors to take a staggered approach to investments.
Net inflow to equity mutual funds took a sharp dip month-on-month and fell from 19,957 crore in October to Rs 15,536 crore in November, showed the AMFI data. Small-cap and mid-cap mutual fund schemes remained the most popular avenues as they received net inflows of Rs 3,699 crore and Rs 2,666 crore, respectively.
“Both the mid-cap and the small-cap indexes have seen a sharp rally over the last six months and one year. Consequently, investors have also flocked to this category with ever increasing flows,” said Melvyn Santarita, Analyst at Morningstar Investment Research.Santarita added that these categories are inherently volatile with sharp drawdown risks, and therefore investors should have a long-term time horizon while investing in these categories.