Mutual fund investments through systematic investment plans (SIPs) reached a fresh record in August, highlighting continued investor participation despite volatility in equity markets. Rising crude oil prices amid geopolitical tensions also failed to dent the steady flow of money into SIPs.
SIP inflows rose to Rs 32,297 crore in August from Rs 31,861 crore in July, according to data released by the Association of Mutual Funds in India (AMFI) on Thursday. The latest increase marks another monthly high for SIP contributions.
The number of contributing SIP accounts climbed to an all-time high of 10.2 crore in August, compared with 9.9 crore in July. The increase reflects the continued expansion of systematic investing among retail investors.
New SIP accounts opened during the month rose to 66.39 lakh from 61.44 lakh in July. At the same time, 53.82 lakh accounts were closed, up from 50.30 lakh in the previous month, taking the total number of active SIP accounts to 10.62 crore.
Equity Inflows Rise 19%
Equity mutual fund inflows increased 19 per cent to Rs 29,329 crore in August from Rs 24,697 crore in July. The growth came despite market uncertainty caused by geopolitical tensions and higher crude oil prices.
Venkat Chalasani, Chief Executive of AMFI, said investors continued to believe in India’s growth story despite the external challenges. He also pointed to the Reserve Bank of India’s ability to mop up $127 billion as a significant achievement given the country’s past experience.
Mid-cap funds attracted Rs 6,989 crore in August, higher than the Rs 6,192 crore recorded in July. The category remained among the key beneficiaries of continued investor interest in equity-oriented mutual funds.
Large-cap funds, however, continued to see outflows, although the pace moderated during the month. The category recorded an outflow of Rs 1,147 crore in August, compared with Rs 1,322 crore in July.
Some Categories See Outflows
Tax-saver funds reported a net outflow of Rs 1,079 crore in August, sharply higher than the Rs 134 crore outflow recorded in July. Dividend-yield funds also remained in the red, with an outflow of Rs 134 crore against Rs 169 crore in the previous month.
Overall assets under management of the mutual fund industry increased to Rs 87.07 lakh crore in August from Rs 85.76 lakh crore in July. The rise was largely supported by mark-to-market gains during the month.