January 2023 saw investments in mutual funds through the SIP?route reach an all-time high of Rs 13,856 crore.
Indian mutual funds currently have about 6.22 crore (62.2 million) SIP accounts through which investors regularly invest in Indian mutual fund schemes, as per AMFI (Association of Mutual Funds in India) data.
SIP inflows reaching Rs 13,856 crore in January 2023 are suggestive of retail investors continuing to show confidence in the mutual fund industry, despite market volatility. This is the fourth month in a row that?SIP inflows were greater than Rs 13,000 crore.
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Looking back at the past year, investments in mutual funds through the SIP route were as follows:
January 2022-Rs 11,517 crore
February 2022- Rs 11,438 crore
March 2022-Rs 12,328 crore
April 2022- Rs 11,863 crore
May 2022- Rs 12,286 crore
June 2022- Rs 12,276 crore
July 2022- Rs 12,140 crore
August 2022- Rs 12,693 crore
September 2022- Rs 12,976 crore
October 2022- Rs 13,041 crore
November 2022-Rs 13,306 crore
December 2022- Rs 13,573 crore
January 2023-Rs 13,856 crore
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In January 2023, investors preferred to invest in small, large, and midcap funds?because of market volatility, which led to a rise in equity mutual fund inflows. Additionally, the most current statistics from the Association of Mutual Funds in India (AMFI) show that net investments in equity and equity-linked schemes surged by an astounding 71% to Rs 12,547 crore from Rs 7,303 crore in December 2022, as per a TOI report.
Apart from SIP, when?equity?inflows are concerned, the recent equity inflows of more than Rs 12,000 crore are the highest monthly inflows seen in the last eight months. This is a significant increase and may indicate a growing confidence among investors in the equity market, despite the ongoing market volatility. It is surprising to see positive inflows in all segments of the equity market, including mid-caps, large-caps, small-caps, multi-caps, flexi-caps, and all other types of equity segments. Furthermore, this is the 23rd straight month of positive inflows coming into the equity segment.
In terms of?debt, as per the report, there has been some outflow, but the important thing to note about this debt segment is that interest rates are rising. Overnight funds, liquid funds, and short-duration funds are considered to be among the most sensitive to changes in interest rates. These types of funds typically invest in short-term debt securities and are therefore more vulnerable to fluctuations in interest rates.
There were other segments that indicated some systemic positive inflows. Index funds, arbitrage funds, and even your multi-asset funds, are among them. Whether it be for equity AUM or for total AUM, both are at record highs.
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