Investments in mutual funds through systematic investment plans (SIPs) touched an all-time high of Rs 13,306 crore in November, which primarily shows the confidence of retail investors in MF sector.
In October this year, investors poured in Rs 13,041 crore through SIPs in mutual funds – which was also a record high. November months‘ SIP inflows surpassed that number.
In terms of SIPs of equity mutual funds, inflows came lower by 76 percent to Rs 2,258 crore in November from Rs 9,390 crore in October this year, as per the data released by the Association of Mutual Funds in India (Amfi) showed on Friday.
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But, the inflows into equity schemes remained in tact for the 21st straight month.
Since May this year, SIP inflows into mutual funds have been above the Rs 12,000-crore mark. MF investors poured in Rs 12,976 crore in September, Rs 12,693 crore in August, Rs 12,140 crore in July, Rs 12,276 crore in June and Rs 12,286 crore in May. Before that, inflows were recorded at Rs 11,863 crore in April.
In FY23, total SIP inflows have reached Rs 87,275 crore so far in the first eight months. In FY22, an inflow of over Rs 1.24 lakh crore was recorded.
“The healthiest trend in the Indian equity market now is the steady increase in SIPs, which have touched a new record of Rs 13,307 crore in November. It is a proven fact that SIPs are the most successful mode of investment for retail investors,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
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Increasing SIPs shows that Indian equity investors are maturing, Vijayakumar said and suggested that SIP investors should not discontinue their investment when markets correct sharply.
S Ranganathan, Head of Research at LKP Securities, noted that foreign investors have been booking profits but domestic flows through SIPs are at lifetime highs, which reflects the growing maturity and confidence of the domestic investors.
Also, mutual funds added 11.27 lakh SIP accounts in November, taking the total count to about 6.04 crore.
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 instalment amount can be as small as Rs 500 per month.
The assets under management (AUM) of the mutual fund industry surpassed the Rs 40 lakh crore mark for the first time in November, data showed.
