SIP inflows hit record high in June, check details

Systematic investment plans (SIPs) recorded inflows surpassing ₹27,000 crore, reaching an all-time high of ₹27,269 crore in June. This milestone was achieved with 86.4 million contributing accounts, as reported by the Association of Mutual Funds in India (Amfi) on Wednesday. The data reflects a growing trust in mutual funds, supported by continued inflows from foreign investors and an optimistic outlook on India's economic growth.

Despite market volatility, there has been a notable shift towards hybrid and arbitrage funds, indicating a maturation in investor behaviour.

"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," said Venkat Chalasani, CEO of Amfi.

Overall net inflows into open-ended schemes rose by 66% from May, totalling ₹49,301.89 crore, though still below the April figure of ₹2.78 lakh crore. Additionally, the total SIP assets under management increased to ₹15.3 lakh crore in June from ₹14.6 lakh crore in May.

Despite a rise in the number of discontinued SIPs to 4.8 million from 4.3 million in May, the registration of 6.2 million new SIPs, up from 5.9 million, highlights sustained investor interest. Viraj Gandhi, CEO of SAMCO Mutual Fund, commented on the June inflows, stating, "The inflows recorded in June may signify a turning point, reflecting enduring structural confidence in Indian equities and a growing risk appetite."

As of the end of June, the mutual fund industry's net assets under management stood at ₹74.40 lakh crore. There's been a continued preference for small-cap and mid-cap funds over large-cap segments, reinforcing investor conviction in 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," added Gandhi. This trend underscores a broader shift in investor strategies amidst market uncertainties, with an increasing appetite for risk and diversification.