Flows into systematic investment plans (SIPs) continued to hit an all-time high of Rs 27,269 crore with 86.4 million contributing accounts in June, data from Association of Mutual Funds in India (Amfi) showed on Wednesday.
According to Venkat Chalasani, chief executive, Amfi, this underlines the growing trust in mutual funds as a disciplined investment vehicle. He added that these consistent flows, positive flows from foreign investors and India’s growth story are giving positive indication for equity markets.
Overall net inflows of open-ended schemes rose 66% from May to Rs 49,301.89 crore but it is still lower than April level of Rs 2.78 lakh crore. Data also shows that the total SIP AUM rose to Rs 15.3 lakh crore from Rs 14.6 lakh crore in the month of May.
The number of discontinued SIPs rose to 4.8 million from 4.3 million in May while 6.2 million new SIPs were registered compared to 5.9 million last month.
Chalasani added, “While market volatility has made some investors cautious, we’re also witnessing a healthy shift towards hybrid and arbitrage funds a trend that shows maturing investor behaviour and a preference for balanced risk strategies in uncertain times.”
Viraj Gandhi, CEO, SAMCO Mutual Fund said, “The inflows recorded in June may signify a turning point, reflecting enduring structural confidence in Indian equities and a growing risk appetite.”
He added, inflows in small-cap and mid-cap funds continue to outpace those in the large-cap segment, underscoring investor conviction in these growth-oriented categories. “As SIPs continue to gain traction and equity markets sustain their upward momentum, the ₹100 lakh crore AUM target appears increasingly within reach,” he said.
As of June end, the industry’s net assets under management stood at Rs 74.40 lakh crore.