There is huge difference between net SIP inflows and gross SIP inflows in the mutual fund industry.
While the industry has received gross SIP inflows of Rs.92,200 crore over the last nine months, the net SIP inflows were Rs.31,600 crore or 34% of the gross SIP inflows between May 2022 and January 2022, shows an analysis of AMFI data.
The trend seen in both the data sets is also quite different. While gross SIP inflows have risen every month since May, the net numbers show no particular trend.
In the last nine months, the highest net inflow was seen in December 2021 at Rs. 5,390 crore. The net inflow was lowest in September 2021 at Rs. 1,730 crore. Since then, the net inflow rose for three consecutive months before declining a bit in January 2022.
While AMFI does not define net SIPs, according to SEBI, net SIP is the difference between gross SIP inflows and outflows due to SIP discontinuations.
The graph (below) indicates that while inflows through the SIP route has been strong during the period, some month witnessed heightened outflows due to SIP discontinuations, resulting in low net SIP inflows. In June, August and September and October, the net SIP inflows were not even 30% of the gross numbers.
*Numbers are in Rs crore
