In June, SIP contributions totaled more than Rs 20,000 crore. Mutual fund (MF) SIP contributions reached Rs 21,260 crore in June, up from Rs 20,904 crore in May. The cumulative systematic investment plan (SIP) contributions for the first six months of this year surpassed Rs 1 lakh crore, totaling Rs 1.19 lakh crore.
The total assets managed by mutual funds grew by 4% last month, reaching Rs 60.89 lakh crore, up from Rs 58.64 lakh crore in May. This period saw the introduction of 17 new open-ended investment opportunities, which raised a total of Rs 15,227 crore. Sector-specific and thematic funds were the top contributors, mobilizing Rs 12,974 crore, with nine new sector-focused funds launched during the month.
Manish Mehta, National Head-Sales, Marketing & Digital Business at Kotak Mutual Fund, commented that the surge in flows was driven by a combination of steady SIP (Systematic Investment Plan) contributions, new fund offer collections, and lump-sum investments made during market corrections. He credited the distribution network for promoting SIPs, STPs (Systematic Transfer Plans) across diversified equity schemes, and asset allocation products, which have provided investors with a positive experience in mutual funds. As confidence grows, repeat investments and word-of-mouth referrals are leading to increased flows and industry growth.
While the net inflow in debt, hybrid, and other funds declined on a month-over-month basis, the inflows in equity mutual funds increased, albeit at a slower pace. The inflows in hybrid funds dropped by 51% on a month-over-month basis, and the inflows of other schemes declined by 7%. Debt mutual funds saw an outflow of Rs 1.
The mutual fund industry has witnessed impressive growth, establishing itself as a crucial pillar of financial stability and wealth generation for millions of investors. The industry has continued to thrive, benefiting from steady inflows into equity-focused mutual funds, hybrid funds, and passive funds. In June, equity fund inflows reached a record high of Rs 40,608 crore, while SIP inflows hit a new peak of Rs 21,262 crore.
The number of new SIP registrations in June stood at 55,12,962, surpassing the 49,74,400 registered in May. The SIP AUM (Assets Under Management) reached an all-time high of Rs 12,43,791.71 crore in June, up from Rs 11,52,801 crore in May. Similarly, the number of active SIP accounts climbed to an unprecedented 8,98,66,962 in June, compared to 8,75,89,485 in May.
Venkat Chalasani, Chief Executive of AMFI, attributed this remarkable growth to the industry’s unwavering commitment to investor education, strong distribution channels, and digital innovation. He emphasized the industry’s dedication to fostering financial well-being for all its stakeholders, as it continues to adapt and evolve in the dynamic market landscape.
The initial six months of 2024 saw financial inflows totaling around Rs 3.93 lakh crore, with the highest amount, Rs 2.40 lakh crore, being recorded in April.
