SIP contributions in India cross Rs 20,000-crore mark for the first time ever

Inflows into equity mutual funds hit a four-month low in April, with investors trimming large-cap allocations. April inflows stood at Rs 18,917.09 crore against Rs 22,633.15 crore in March, a 16% slump.

For the first time ever, monthly investments via systematic investment plans (SIPs) topped the Rs 20,000 crore mark to hit Rs 20,371 crore during April.

In March it was Rs 19,271 crore, as per AMFI data.

Overall, the mutual fund industry saw an inflow of Rs 2.4 lakh crore in the month under review after experiencing an outflow of Rs 1.6 lakh crore in March. 

The huge inflow was due to investment of Rs 1.9 lakh crore into debt schemes. Barring equity-linked saving schemes (ELSS), which saw an outflow of Rs 144 crore, all categories experienced inflow in equity segments. Further, the inflow in large-cap funds drastically declined to Rs 357 crore in the month under review from Rs 2,128 crore in March. 

With inflows in equity and debt categories, the industry's net assets under management rose to Rs 57.26 lakh crore last month from Rs 53.54 lakh crore in March-end.

Results of stress tests conducted by fund houses in March and mostly in-line fourth-quarter earnings have brought back investors into the segments, said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.

With inflows in equity and debt categories, the industry's net assets under management rose to Rs 57.26 lakh crore last month from Rs 53.54 lakh crore in March-end.