Gross SIP inflows in mutual funds has increased in June to reclaim the Rs.9,000 level last seen in March 2021. Mutual funds garnered Rs.9,156 crore through SIP last month compared to Rs.8,819 crore in May. The figure is only a notch lower than the all-time-high of Rs.9,182 crore recorded in March 2021.
In June, the total number of SIP accounts crossed the 4 crore mark for the first time, thanks to record 21 lakh new registrations. "June 2021 reported record 21.29 lakh new SIP registrations. SIP AUM at an all-time high and now forming almost 15% of total industry AUM and number of SIP accounts breaching 4 crore mark for the first time ever, is reflective of continued retail investor confidence in the mutual fund asset class," said AMFI CEO NS Venkatesh.
Net inflow in equity funds has declined to Rs. 5,988 crore in June after witnessing 14-month-high inflow of Rs. 10,083 crore in May.
Inflows in debt funds was back in the positive territory. The category has recorded Rs. 3,566 crore net inflows compared to Rs. 45,500 crore outflow in May.
Let us look at the key numbers of June 2021:
Equity schemes
- Overall, equity schemes have witnessed net inflows of Rs. 5,988 crore. The number is 41% lower than May net inflows of Rs. 10,083 crore
- Barring value funds (Rs. 115 crore outflow) and ELSS (Rs. 792 crore outflow), all equity schemes witnessed net inflows
- Midcap funds recorded highest inflows at Rs. 1,729 crore followed by sectoral funds (Rs. 1,207 crore inflows)
- Closed-ended equity-oriented schemes have seen net outflows of Rs. 1,379 crore largely due to maturity of a few schemes
“Investors continue to invest in pure equity schemes resulting in positive net sales of almost Rs 6,000 crore. This is slightly lower than last month due to higher redemption. It is particularly very encouraging to witness good amount of interest in dynamic / asset allocations funds with higher net sales of Rs. 2,300 crore,” said Akhil Chaturvedi, Associate Director, Head of Sales & Distribution, Motilal Oswal MF.
Debt schemes
- Debt category was back in black after Rs 44,512 crore outflow in May. The category witnessed Rs. 3,566 crore net inflow in June
- Overnight funds and low duration funds together contributed Rs. 10,733 crore to the inflow data
- Money market funds witnessed highest outflows at Rs. 13,989 crore followed by ultra-short duration funds (Rs. 2,440 crore outflow)
"June month saw flattish net sales in fixed income – it being a month end and quarter end too. FMP, a category that continued to witness negative net sales as investors seem to adopt a wait and watch approach before locking in funds," said Lakshmi Iyer, CIO (Debt) & Head Products, Kotak Mahindra MF.
Hybrid schemes
- Inflows in hybrid schemes has almost doubled to Rs. 12,361 crore in June compared to Rs. 6,217 crore in May
- Arbitrage fund was the biggest contributor in boosting the inflows by adding Rs. 9,060 to its AUM kitty
- Dynamic asset allocation fund has recorded second highest inflows in the category at Rs. 2,324 crore
Overall trend
- Industry AAUM has gone up by over Rs. 1 lakh crore to Rs. 34.10 lakh crore in June. In May, the AAUM was Rs. 32.99 lakh crore
- Total number of SIP accounts has crossed the 4 crore mark in June, thanks to the record high 21 lakh SIP registrations during the previous month
- Gross inflows through SIP has risen to Rs. 9,156 crore as compared to Rs. 8,819 crore in May
- Seven NFOs were launched in June and they together mobilized Rs. 1,090 crore
