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MF News SIP inflow increases by 53% in FY 2017-18

SIP inflow increases by 53% in FY 2017-18

Also, the average assets under management (AAUM) of the mutual fund industry reached close to Rs.23 lakh crore in March 2018.
Team Cafemutual Apr 16, 2018

SIPs continue to remain the favourite option for retail investors to invest in mutual funds.

AMFI’s latest data shows that the industry mopped up close to Rs.67,190 crore in FY 2017-18 as against Rs.43,921 crore in FY 2016-17 through SIPs, a massive growth of 53%.

The monthly inflows in mutual funds through SIPs reached an all-time high at Rs.7,100 crore in March 2018. In April 2017, the industry received Rs.2,784 crore through SIPs.

Another good news for the MF industry is increase in the average ticket size of SIP. The average ticket size of SIP has grown from Rs.3,200 in March 2017 to Rs.3,375 in March 2018.

In terms of SIP accounts, the industry had 2.11 crore active SIP accounts in March 2018 compared to 1.35 crore in the corresponding period last year. On an average, AMFI data shows the MF industry has been adding about 10 lakh SIP accounts each month.

Experts attribute this growth to increasing investor awareness and good performance of equity schemes.

SIP has been gaining popularity among Indian MF investors as it helps in rupee cost averaging, and in investing in a disciplined manner without worrying about volatility and timing the market. SEBI Investor Survey (SIS) 2015 says that six out of 10 investors prefer investing in mutual funds through SIP.

Meanwhile, the average assets under management (AAUM) of the mutual fund industry reached close to Rs.23 lakh crore in March 2018. AMFI’s latest data shows that AAUM of the MF industry reached Rs.22.71 lakh crore in March 2018.

However, the monthly AUM of industry stood at Rs.21.36 lakh crore in March 2018.

While AAUM is the average assets of the entire month and is calculated by factoring in all working days of the month, month end AUM are the assets of the industry as of the last working day of the month.

Overall, AMFI data shows that the industry has received net inflows of Rs.2.85 lakh crore in equity funds including pure equity funds, balanced, ELSS and equity ETFs last fiscal. The total equity AUM reached a record high at Rs.9.95 lakh crore in March 2018.

The industry’s AUM had crossed the milestone of Rs.10 lakh crore for the first time in May 2014 and in a short span of a little over three years, the AUM size has doubled to Rs.20 lakh crore.

The total number of folios as on March, 2018 was 7.11 crore.

Inflows through SIP (in Rs crore)

 

FY 2017-18

FY 2016-17

Change

Change in %

March

7,119

4,335

2,784

64%

February

6,425

4,050

2,375

59%

January

6,644

4,095

2,549

62%

December

6,222

3,973

2,249

57%

November

5,893

3,884

2,009

52%

October

5,621

3,434

2,187

64%

September

5,516

3,698

1,818

49%

August

5,206

3,497

1,709

49%

July

4,947

3,334

1,613

48%

Jun

4,744

3,310

1,434

43%

May

4,584

3,189

1,395

44%

April

4,269

3,122

1,147

37%

Total during FY

67,190

43,921

23,269

53%

 

Source: AMFI

 

1 Comment
S.MOHAN · 3 months ago
The very methodology of computation of AUM of AMCs/Fund Houses is flawed. The aggregate of amounts Distributors garner should be the AUM and should have no relationship with the NAV. Yes for the purpose of valuation of the aggregate of the Funds in a category, the NAV comes into the picture. For eg if I as an IFA mobilise Rs.1000/-, that is the AUM and not Rs.1000/- divided by the NAV. Hope the point is clear. So naturally the AUM only goes up or down based on the business garnered by a Fund House.
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