Mumbai: The SIP (Systematic Investment Plan) has remained above the Rs 12k crore mark for the fifth straight month and hitting record highs. Retail investors have shown resilience amid the volatility seen in the month of September. The NFOs (New Fund Offerings) also contributed to the SIP inflows for third straight month after a three month ban by SEBI. As per the AMFI data for the month of September, the SIP rose to Rs 12,976 crore vs Rs 12,694 crore on a month-on-month basis. Retail Participation as a share of overall MF Industry AUM at more than 50 percent signifies continued interest in the mutual fund asset class.
Overall net outflows stood at Rs 41,404 crore, snapping two months of net inflows and the highest outflow seen since the month of June this year. The outflow number was very high because of debt scheme outflows at Rs 65,372 crore. These outflows were mainly liquid, duration funds and money market funds.
The equity segment saw inflows for nineteenth consecutive month. All equity fund categories saw an inflow in August. Equity flows stood at Rs 14,100 crore-highest in three months. Equity inflows increase due to rise in sectoral thematic fund where more than Rs 4,000 crore of inflows was recorded. All categories of Large, Midcap, Smallcap and Flexicap saw an incremental growth of inflows as compared to August.
Equity AUM rose to Rs 14.9lk crore-at record highs, while the total AUM in the MF space was near the Rs 39.9lk crore mark, coming in at record levels. The AUM numbers showed a strong movement as India delivered an outperformance amongst all major global markets and even the de-coupling effect from other global economies were seen with signs of inflation cooling off, betters EPS growth amongst corporate earnings, strong GDP growth and rising credit in the banking system.
In September, Indian markets saw FPI selling worth Rs 7,624 crore in the equity market, however the domestic funds bought Rs 14,120 crore in the cash market. Even the NFOs saw an inflow of Rs 8,374 crore in September and a total of 21 schemes were launched. This also helped in increasing Total AUM and SIP inflow numbers. Nifty declined 3.7% in the month of September while broader indices fell between 2-3 percent.
Speaking on the occasion, Mr N S Venkatesh, Chief Executive, AMFI said: SIP numbers look healthy with the highest ever contribution at INR 12,976 crores a month. We are hopeful that we will touch ₹13,000 crore per month mark in contribution in the coming months. Mr. NS Venkatesh added, “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. 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”.
