SIP flows in December top Rs. 13k crore for 3rd month in row

Monthly flows into mutual fund schemes through systematic investment plans (SIPs) inched up to Rs 13,573 crore in December, an all-time high, as investors continued to use this route to save for the long term. This was the third consecutive month that SIP flows remained above the Rs 13k croremark, according to data released by the industry trade body Amfi.

The December data indicated that, over the last one year, monthly SIP flows have jumped 20% — or Rs 2,268 crore — while the number of SIPs have surged by 25% to 6. 1 crore.

According to Amfi chief executive N S Venkatesh, the importance of investing in equity markets for longer term goals is not lost on investors. This is reflected in the ever-increasing awareness and adoption of SIPs as a goal-linked route to create wealth over the long term. “This month, almost 24 lakh new SIPs were registered, which shows increasing investor belief in the instrument,” Venkatesh said.

The MF industry’s total assets under management (AUM), however, showed a marginal drop to Rs 39. 9 lakh crore from Rs 40. 4 lakh crore in November.

Among the various fund categories, debt schemes witnessed a Rs 21,947-crore net outflow, while equities saw a net inflow of Rs 7,303 crore. Hybrid schemes saw a net inflow of Rs 2,255 crore, while ETFs recorded the biggest net inflow for the month, at Rs 15,398 crore, according to the Amfi data.