SIP Contributions Surpass Rs 26,000 Crore for Two Consecutive Months

Synopsis

SIP contributions have maintained their momentum, exceeding Rs 26,000 crore for the second month in a row. January attracted Rs 26,400 crore in SIP investments, promoting a notable increase in overall mutual fund inflows despite market volatility.

Key Takeaways

SIP contributions exceeded Rs 26,000 crore for two months.
Open-ended mutual funds saw net inflows rise significantly.
Small-cap funds attracted notable investments.
Hybrid funds recorded a substantial increase in inflows.
ETFs and index funds saw remarkable growth in January.

Mumbai, Feb 12 (NationPress) Contributions to systematic investment plans (SIPs) remained above the Rs 26,000 crore threshold for the second consecutive month, with January recording Rs 26,400 crore in SIP investments, slightly lower than the Rs 26,459 crore noted in December, as reported by the Association of Mutual Funds in India (AMFI) on Wednesday.

Despite the persistent fluctuations in the stock market, the total assets under management (AUM) for all open-ended schemes experienced a slight increase of 0.49 percent, rising to Rs 66.98 lakh crore from Rs 66.66 lakh crore the previous month.

The total number of mutual fund folios also saw an uptick, reaching 22.91 crore in January, up from 22.50 crore in December, according to the report.

Overall, open-ended mutual funds enjoyed notable inflows, with net investments climbing to Rs 1.87 lakh crore in January, a significant jump from Rs 80,509 crore in December.

However, equity mutual fund inflows dipped by nearly 4 percent month-on-month, totaling Rs 39,687 crore in January, down from Rs 41,155 crore in December.

On a positive note, small-cap funds emerged as a favored option for investors, attracting Rs 5,720 crore, marking a 22.6 percent increase from December.

Hybrid mutual funds also witnessed a remarkable surge in inflows, soaring by 101 percent to Rs 8,767 crore in January, up from Rs 4,369 crore in December.

Additionally, investments in various schemes, including index funds and exchange-traded funds (ETFs), experienced a staggering growth of 1,207 percent.

These inflows reached Rs 10,225 crore in January, a sharp rise from just Rs 784 crore in December, according to the report.

Within this category, index funds attracted the highest investments, garnering Rs 5,254 crore, with Gold ETFs following closely at Rs 3,751 crore in new investments.

Other ETFs, which faced outflows of Rs 4,558 crore in December, reversed the trend, recording inflows of Rs 1,171 crore in January.