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The Indian mutual fund industry experienced a significant milestone in October 2024, with monthly Systematic Investment Plan (SIP) inflows exceeding Rs 25,000 crore for the first time ever. This surge in SIP contributions reflects a growing trend of disciplined investing among Indian investors, driven by the attractive returns offered by mutual funds and a rising awareness of the benefits of long-term wealth creation. The SIP inflow reached Rs 25,323 crore in October, surpassing the previous high of Rs 24,509 crore recorded in September. This represents a substantial increase from Rs 16,928 crore in the same period last year, showcasing the remarkable growth momentum witnessed in the mutual fund industry.
The consistent growth in SIP contributions is a testament to the rising popularity of mutual funds as a preferred investment avenue among Indian investors. SIPs offer a convenient and disciplined approach to investing, allowing individuals to invest regularly in small amounts over time. This disciplined approach helps investors average out their purchase price, mitigating the risk of market volatility. The surge in SIP inflows is further supported by the increasing retail participation in the mutual fund market. Retail folios, which include equity, hybrid, and solution-oriented schemes, reached an all-time high of 17.23 crore in October, indicating a strong inclination towards diversified investments.
The growth in retail participation is also reflected in the increase in the Assets Under Management (AUM) of retail schemes, which stood at Rs 39,18,611 crore in October. While the AUM declined slightly compared to September's figure of Rs 40,44,098 crore, it still reflects the overall strong performance of the mutual fund industry. The total AUM of the industry reached an all-time high of Rs 67.26 lakh crore, underscoring the confidence investors have placed in mutual funds. The positive inflows into equity-oriented schemes, totaling Rs 41,886.69 crore in October, demonstrate the optimistic outlook of investors towards the Indian stock market. The consistent growth in SIPs, with a record number of new SIPs registered at 63,69,919 in October, and a total number of SIP accounts reaching an all-time high of 10,12,34,212, reflects the growing preference for disciplined investing among Indian investors.
The surge in SIP contributions and retail participation is not just a reflection of market sentiments but also a testament to the increasing financial literacy and awareness among Indian investors. As investors become more sophisticated, they are increasingly looking towards professional fund managers to manage their investments and achieve their financial goals. The growth of the mutual fund industry is further bolstered by the regulatory environment in India, which emphasizes investor protection and encourages transparency in fund operations. The commitment to making mutual funds the cornerstone of wealth creation for every Indian investor, coupled with efforts to build a more financially inclusive nation, is paving the way for continued growth in the industry.
Source: Mutual fund monthly SIP inflow crosses Rs 25,000 crore mark for first time