SIP Investments in India Exceed Rs 25,000 Crore for the Second Consecutive Month

New Delhi, Dec 10 (NationPress) The inflow into systematic investment plans (SIPs) was recorded at Rs 25,320 crore in November, closely mirroring the figures from October, which stood at Rs 25,323 crore, according to data released by the Association for Mutual Funds in India (AMFI) on Tuesday.

In November, the total assets under management (AUM) in the mutual fund sector rose to Rs 68.08 lakh crore, an increase from Rs 67.25 lakh crore in October, as per AMFI data.

October marked a significant milestone, as SIP investments surpassed Rs 25,000 crore for the first time, indicating a growing preference among investors for mutual fund investments through SIPs.

The proportion of direct plans within SIP accounts has surged to approximately 40 percent, compared to nearly 21 percent four years prior.

Industry statistics reveal that the AUM associated with direct plan SIPs has grown to Rs 2.7 lakh crore by October 2024, up from Rs 29,340 crore in March 2020.

During this timeframe, the share of direct plans in SIP AUM has risen by 12.2 percent, reaching 20.3 percent.

The total number of SIP accounts soared to an all-time high of 10.12 crore in October, compared to 9.87 crore in September.

Akhil Chaturvedi, Executive Director and Chief Business Officer of Motilal Oswal AMC, noted that increased volatility driven by various macroeconomic factors, geopolitical events, and the US election outcomes led to a more cautious investor approach, resulting in larger allocations and a decline in lump sum flows alongside stable SIP numbers for November.

Equity-linked Savings Schemes (ELSS) experienced a surge in inflows, climbing to Rs 618.5 crore in November from Rs 362 crore in October.

In addition, small-cap funds saw a 9.0 percent increase in November, rising from Rs 3,772 crore to Rs 4,112 crore.

Mid-cap funds also recorded a modest growth of 4.3 percent, increasing from Rs 4,683 crore to Rs 4,883.4 crore.