In a significant milestone for India’s mutual fund industry, contributions to Systematic Investment Plans (SIPs) surged to a record-breaking ₹25,323 crore in October 2024. This marks the first time that SIP inflows have exceeded the ₹25,000 crore mark, up from the previous month’s figure of ₹24,509 crore.
Investor interest in SIPs remains robust, with new registrations rising sharply. October witnessed 63.7 lakh new SIP accounts, a considerable jump from 58.7 lakh in September. This influx brought the total number of SIP accounts to 10.12 crore, reflecting a 2.5% growth from September’s 9.87 crore.
The industry’s overall SIP Assets Under Management (AUM) also climbed, reaching ₹13.30 lakh crore in October, a 2.3% increase from ₹13.01 lakh crore in the prior month. These developments highlight an ongoing trend of consistent equity inflows, as October 2024 marked the 44th consecutive month of positive net equity inflows for the mutual fund sector, which began in March 2021.
The surge in SIP contributions mirrors a broader shift in investment patterns. Retail folios have now surpassed 17.23 crore, while the total AUM for the industry stands at ₹67.26 lakh crore.
Anish Mehta, National Head of Sales, Marketing & Digital Business at Kotak Mahindra Asset Management, pointed out that investors are increasingly turning to large-cap funds as a stable option amid market fluctuations. “We are seeing a shift towards large-cap funds, with investors recognising the stability they offer. A significant portion of funds is also flowing into multi-cap and flexi-cap funds, providing a balanced risk approach,” he noted.
Venkat Chalasani, CEO of the Association of Mutual Funds in India (AMFI), commented on the growing investor confidence in mutual funds. “October 2024 marks the 44th consecutive month of positive equity inflows. This sustained SIP momentum and rising AUM highlight Indian investors’ growing maturity and commitment to long-term wealth creation through mutual funds.”
With the mutual fund industry on a steady growth trajectory, SIPs continue to play a pivotal role in India’s retail investment landscape.
