Monthly contributions through systematic investment plans (SIPs) into mutual funds touched a record high of ₹32,490 crore in September, up 0.6% from ₹32,297 crore in August, according to data from the Association of Mutual Funds in India (AMFI).
SIP contributions have remained above ₹32,000 crore for the second consecutive month, with September setting a new record.
SIPs allow investors to contribute a fixed amount to mutual fund schemes at regular intervals, usually monthly, rather than invest a lump sum at one time.
Manish Mehta, Chief Business Officer at SBI Mutual Fund, said SIP numbers were largely flat month-on-month, but investor confidence in using SIPs to navigate market volatility was encouraging.
Nirav Karkera, Head of Research and Fund Manager at W by Groww, said the record SIP inflows could reflect both fresh investments and investors switching the mutual fund schemes through which they invest via SIPs.
He said SIP inflows should also be viewed alongside SIP stoppages to understand the trend better.
The September data also showed net inflows into equity mutual fund schemes rising 30.6% month-on-month to ₹38,293.5 crore from ₹29,315 crore in August. Small-cap funds attracted ₹9,039 crore, their highest-ever monthly inflow, while mid-cap funds saw inflows of ₹7,835 crore.
In terms of assets under management (AUM), mid-cap funds had ₹5.14 lakh crore at the end of September, followed by small-cap funds at ₹4.16 lakh crore. Both categories had a higher AUM than large-cap funds, which stood at ₹3.9 lakh crore.
Karkera said strong inflows into small- and mid-cap funds indicated continued investor interest in these segments despite volatility. He added that interest in large-cap funds was also returning, citing their relatively wider margin of safety and investor interest in sectors such as financial services.
Equity exchange-traded funds (ETFs) attracted ₹9,960 crore during September, while gold and silver ETFs saw inflows of ₹4,451 crore and ₹1,974 crore, respectively.
The mutual fund industry’s total assets under management stood at ₹82.64 lakh crore at the end of September, compared with ₹87.07 lakh crore in August.
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