Did SIP inflows reach an unprecedented Rs 26,632 crore in April? AMFI Reveals
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Synopsis
April witnessed an unprecedented surge in SIP contributions, with Rs 26,632 crore invested, marking record inflows. This reflects growing investor confidence despite a clean-up of inactive accounts. The mutual fund industry continues to expand, with total AUM reaching Rs 70 lakh crore, showcasing an optimistic outlook for long-term wealth building in India.
Key Takeaways
- Record SIP inflows of Rs 26,632 crore in April.
- Active SIP accounts grew to 8.38 crore.
- Total AUM reached Rs 70 lakh crore.
- Large-cap funds rebounded with net inflows.
- Investor confidence remains strong despite account clean-up.
Mumbai, May 9 (NationPress) The mutual fund sector in India experienced a remarkable rise in systematic investment plan (SIP) contributions during April, with investors channeling an astonishing Rs 26,632 crore last month, as per the latest data from the Association of Mutual Funds in India (AMFI) released on Friday.
This figure represents the highest SIP inflow recorded for any single month, the report indicates.
During April, 1.36 crore SIP accounts were either closed or matured. Nevertheless, investor enthusiasm remained robust, with the number of active SIP accounts increasing to 8.38 crore in April, up from 8.11 crore in March, highlighting a persistent interest in building long-term wealth through mutual funds.
Additionally, April witnessed the establishment of 46 lakh new SIP accounts, surpassing the 40.19 lakh new accounts opened in March.
AMFI noted that the uptick in account closures was part of a planned clean-up and is expected to decrease significantly from May onwards.
“The ongoing inflows emphasize a positive shift in investor sentiment, bolstered by strong corporate earnings, resilient macroeconomic conditions, and a continued preference for equities as the desired asset class,” stated Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India.
Interestingly, the lack of any major new fund launches throughout the month suggests that investors predominantly allocated their capital to existing schemes, reflecting their confidence in the long-term growth potential of Indian equity markets, he added.
The record-breaking investment occurred alongside the industry’s significant clean-up of inactive accounts.
Despite a slight decline in inflows into equity mutual funds, the overall mutual fund sector continued to exhibit rapid growth.
Total assets under management (AUM) reached an unprecedented Rs 70 lakh crore in April.
This marks a substantial increase from Rs 65.74 lakh crore recorded in March, demonstrating strong investor confidence in the market.
Large-cap mutual funds, which had previously experienced outflows, rebounded with net inflows of Rs 2,671.46 crore in April, a slight rise from Rs 2,479.31 crore in March. The report suggests that investors are regaining interest in these relatively stable funds.
Mid-cap funds attracted Rs 3,313 crore during the month, a minor decrease from Rs 3,438.87 crore in March.
Meanwhile, small-cap funds maintained steady performance, garnering Rs 3,999.95 crore in April, only slightly less than the Rs 4,092 crore they received the previous month.
Point of View
Ensuring that even amid account clean-ups, investors continue to show confidence in their financial futures. This trend is likely to shape the industry positively, encouraging more participation in mutual funds.
NationPress
21/05/2025
Frequently Asked Questions
What are SIPs?
SIPs, or Systematic Investment Plans, allow investors to invest a fixed amount regularly in mutual funds, promoting disciplined and long-term investing.
Why did SIP inflows reach an all-time high?
The surge in SIP inflows is attributed to improved investor sentiment, strong corporate earnings, and a growing preference for equities among investors.
How many new SIP accounts were created in April?
In April, 46 lakh new SIP accounts were established, indicating a strong interest in mutual funds among investors.
What is the current AUM of the mutual fund industry?
The total assets under management (AUM) of the mutual fund industry reached an all-time high of Rs 70 lakh crore in April.
How do large-cap funds perform in April?
Large-cap mutual funds experienced net inflows of Rs 2,671.46 crore in April, showing a rebound in investor interest after previous outflows.
