Flows into systematic investment plans (SIPs) continued to hit a fresh record for a fourth consecutive month in July, touching Rs 28,464 crore with 91.1 million accounts contributing to it, data released by the Association of Mutual Funds in India (Amfi) on Monday showed. Overall, inflows into equity schemes touched a record high of Rs 42,702 crore, up 81% month on month.
At Rs 15.19 lakh crore, the SIP Assets Under Management (AUM) for July was 19.7% of the Rs 77 lakh crore average assets under management of the industry for the month.
Robust Inflows Amidst Market Headwinds
Venkat N Chalasani, Chief Executive, AMFI said, “The total Assets under Management grew by 1.3% to Rs 75.36 Lakh Crores, despite pressures from strong US Dollar and persistent foreign fund outflows. This is a testament to sustained investor confidence and disciplined participation.”
In July, both the Nifty and the Sensex fell nearly 3%, while BSE Midcap and BSE Smallcap fell around 2.3%.
The Growing Appetite for Thematic and Smaller-Cap Funds
Overall, net inflows into open-ended mutual fund schemes rose by more than 260% due to more than Rs 1 lakh crore inflow into debt schemes as against outflow of Rs 1,711 crore last month.
A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Ltd. said, the record inflow into equities and all-time SIP contribution reflects the deep commitment and trust shown by the investors. He added, the rise in midcap, smallcap, and sectoral fund participation signals a growing appetite for diversified growth.
Inflows into thematic funds rose the most and touched a seven-month high of Rs 9,426 crore from Rs 476 crore in June, that into smallcap schemes rose 61% from June to Rs 6,484 crore, and midcap schemes inflow was 38% higher than last month at Rs 5,182 crore.
Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India) advised investors to remain mindful when chasing sectoral opportunities. “These products can be rewarding if the risks are understood and investments are made for the right reasons,” she said.
According to her, using corrections as opportunities is wise, but in the long run, systematic investing remains the most powerful approach.