What is the Current Mutual Fund SIP Landscape in India?

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In January, the Indian mutual fund industry witnessed a significant surge in its assets under management (AUM), marking a notable rise of 3.5% on a month-on-month basis, reaching INR 52.9 lakh crore. Compared to the previous year, this represented a substantial 30% increase, reflecting a remarkable recovery from the post-pandemic lows, which were 114% lower. This surge was attributed to the ongoing market rally, particularly in mid- and small-cap segments, coupled with robust inflows during the month.

The net inflow into mutual funds amounted to INR 1.2 lakh crore, a stark contrast to the net outflow of INR 40,685 crore observed in December 2023. Notably, this marked the highest monthly net inflow in the last 51 months, driven by strong contributions from Systematic Investment Plans (SIPs). Close-ended schemes also experienced a 4.5% month-on-month increase in AUM, reaching INR 29,053 crore, contributing 0.5% to the total mutual fund AUM.

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Individual investors emerged as significant buyers of Indian equities, both directly and indirectly, with record-high monthly inflows of INR 36,383 crores into NSE-listed companies. Additionally, indirect participation through SIPs remained robust, with net inflows reaching a fresh record high of INR 18,838 crores in January, reflecting a 7.4% month-on-month increase.

This translated to an average SIP inflow of INR 16,076 crore, marking a notable growth of 23.7% compared to the previous fiscal year. The SIP AUM stood at INR 10.3 lakh crore, constituting one-fifth of the overall industry AUM, indicating a growing preference for systematic investment approaches among retail investors.

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  • Lax Min @Lax Min
    This is the kind of useless reading that is spoiling investing.com as a prefered source of information. The information here is neither actionable nor is it anything new. Not even implications are provided for investors.And the concentration of information is lighter than what we can get on twitter.
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