The latest AMFI data shows that the mutual fund industry has been receiving an average monthly inflow of Rs.7,650 crore through SIPs. This is the average monthly inflow of three months for the period July to September 2018. In the preceding quarter, i.e., between April and June 2018, the average monthly SIP inflow was Rs.7,182 crore.
In September alone, the monthly inflows in mutual funds through SIP reached an all-time high of Rs.7,727 crore.
Overall, the data shows that the industry mopped up close to Rs.44,500 in the last six months through SIPs, which is much higher than the first six month of SIP inflows in FY 2017-18 and the entire year SIP inflows of FY 2016-17.
Another good news for the mutual fund industry is the increase in the SIP accounts. Mutual fund SIPs accounts stood at 2.44 crore in September. AMFI data shows that the MF industry had added about 10 lakh SIP accounts each month on an average during the FY 2018-19, with an average SIP size of about Rs.3,200 per SIP account.
In terms of average AUM (AAUM), the mutual fund industry crossed an Rs.24 lakh crore in September 2018. AMFI’s latest data shows that AAUM of the MF industry has reached Rs.24.31 lakh crore in September 2018, which is slightly lower than AAUM of August 2018 at 24.70 lakh crore.
However, the monthly AUM of industry stood at Rs.22.04 lakh crore in September 2018 due to large-scale redemption from corporates and institutional investors from the debt funds to pay advance tax.
While AAUM is the average assets of the entire month, which is calculated by factoring in all working days of the month, month end AUM is the assets of the industry as of the last working day of the month.
Experts say that the growth has come largely because of higher inflows in balanced funds, arbitrage funds and equity funds through SIPs.
NS Venkatesh, CEO, AMFI attributed this growth to increasing participation of retail investors. He said, “Despite the market volatility and the credit event which occurred, the flows in equity segment of the market from the retail investors have been positive. It showed an amount of about Rs.12,000 crore of positive inflows. The quarterly average AUM for the quarter ended September 2018 shows a year on year growth of 16%. There has been a robust growth in the number of folios at 26% annually, which now stands at 7.75 crore. SIPs continue to show an increasing trend with Rs.7727 crore of funds mobilized in September 2018.”