The assets under management (AUM) of SIPs were at the highest-ever level at ₹13,09,385.5 crore in July 2024, a 5.3% rise from ₹12,43,791.7 crore in June 2024, according to AMFI data.
The growth comes on the back of a 6.2% increase in the net AUM of mutual funds in India to ₹64,96,653.1 crore in July 2024, the Association of Mutual Funds in India (AMFI) said in a statement.
Contributions to systematic investment plans (SIP) hit an all time high of ₹23,331.8 crore in July 2024, a 10% rise from ₹21,262.2 crore a month earlier, AMFI said. The record in SIP contributions reflected the growing financial discipline among retail investors, helping them build wealth systematically over time,” AMFI Chief Executive Venkat Chalasani said in a press briefing.
The mutual funds statistics come a day after RBI Governor Shaktikanta Das attributed the slowing deposit growth in the banking sector to retail investors moving to alternative investment avenues.
“It is observed that alternative investment avenues are becoming more attractive to retail customers and banks are facing challenges on the funding front with bank deposits trailing loan growth. As a result, banks are taking greater recourse to short-term non-retail deposits and other instruments of liability to meet the incremental credit demand. This, as I emphasised elsewhere, may potentially expose the banking system to structural liquidity issues,” Mr. Das said in the monetary policy statement on August 8.