Mutual Fund SIPs Reach New All-Time High In September, Where Are People Investing?

With the?Sensex?(67,927)?and Nifty?(20,222) both hitting new all-time highs?in September, mutual fund investors came forward to showcase their faith in the stock market, with?SIPs?hitting new all-time highs too.

How Much Did People Invest In Mutual Fund SIPs?

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Investors'?SIP?contribution?reached its fresh all-time high of Rs 16,042.06 crore in September, compared to the SIP contribution of Rs 15,814 crore a month ago in August.

The number of SIP accounts stood at the highest ever in September at 712.93 lakh, compared to 696.86 lakh in August. The number of new SIPs registered in September was the highest ever at 36.77 lakh, compared to 35.92 lakh in August, as per the PTI report.

Also Read:?Step Up?SIPs?vs Regular?SIPs?-?Mutual Funds

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Where Are People Investing?

Inflow into equity mutual funds slumped by over 30 percent month-on-month to Rs 14,091 crore in September?due to a risk-off sentiment in the stock markets.?Equity mutual funds witnessed an inflow of Rs 20,245 crore in August, according to the data from the Association of Mutual Funds in India (AMFI) released on Wednesday.

Despite the decline, inflow through SIPs (systematic investment plans) hit a fresh all-time high of Rs 16,042 crore last month. In the first six months of the current financial year, the total SIP amount stood at Rs 90,304 crore, clocking a healthy run rate of Rs 15,050 crore.

While overall net flows experienced a dip in various categories of equity funds,?thematic or sectoral funds extended their positive trend into the current month, attracting the highest net inflows. Thematic funds saw the highest inflows to the tune of Rs 3,147 crore during the month. The spike in flows in this category could also be attributed to four new fund launches in this category, which cumulatively garnered Rs 1,629 crore.

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Inflow into equity mutual funds slumped by over 30 percent month-on-month to Rs 14,091 crore in September.

In August too, this category saw the highest flows (Rs 4,805.81 crore, aided by five new fund launches). However, the quantum of net flows in both the small cap and the midcap as a category saw a dip compared to the previous months, as per the report.

Large-cap funds?experienced outflows to the tune of Rs 110 crore during the month. This was the fifth consecutive month where the large cap witnessed net outflows. The?midcap?category attracted Rs 2,000 crore last month, which was lower than the Rs 2,512 crore inflow seen in August.

Debt-oriented schemes?witnessed net outflows of Rs 1.01 lakh crore in September, making it the second consecutive month of decline. The segment had witnessed a net outflow of Rs 25,873 crores in August, as per the report. Expectedly, liquid funds witnessed the highest net outflows of over Rs 74,000 crore during the month.

The mutual fund industry’s AUM stood at Rs 46.58 lakh crore in September-end as compared to Rs 46.63 lakh crore at the end of August.

Also Read:?Benefits Of Investing In?Mutual Fund?Through?SiPs

What Are Mutual Fund Experts Saying?

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“Mutual Fund Industry’s growth has been on an upward trend. The half yearly growth has been encouraging and we are optimistic that the trend will continue to grow. Irrespective of the global headwinds, Indian markets have shown resilience. DII’s have been strongly driving the market growth. The Mutual Fund industry crossing the 4 crore unique investors mark is a testament to Indian retail investors’ participation in equity markets through the Mutual Fund route,” said NS Venkatesh, CEO,?Association of Mutual Funds in India (AMFI), as per PTI report.

“The sustained robust inflows into equity funds demonstrate the underlying positive sentiments of investors. The SIP flows continue to be good and could act as a powerful counterforce against any serious FPI outflows, ” G Pradeepkumar, CEO, Union Asset Management Company, said.

As per Indian express report, Melvyn Santarita, Analyst – Manager Research, Morningstar Investment Adviser India, said?“The dip in the net flows of these (small-cap and mid-cap) categories could be attributed to some bit of profit booking by investors coupled with concerns regarding inflated valuations in some of these segments."

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