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The SIP growth story came back on track in March as inflows crossed the Rs. 12,000 crore mark for the first time. SIP contribution had declined a bit in February after rising for several months in a row till January.
Overall, the industry saw a net outflow of Rs. 70,000 crore in March due to outflow in excess of Rs. 1 lakh crore from debt funds. AMFI said the outflow from debt funds was mostly on account of corporate redemptions for tax needs.
"In FY 2021-2022, the industry AUM rose by 20% and folio count jumped 32%. This is a remarkable achievement in a year which was hit by the pandemic early on and geo-political tensions at the end," said AMFI CEO NS Venkatesh.
Industry executives said the high inflows in equity schemes showcases rising maturity of retail investors.
"Retail investors remain undeterred amidst ongoing geopolitical tensions as we see 13th consecutive month of positive net inflow in Equity. It is also very heartening to see that Industry's SIP book has hit an all-time high of Rs. 12,327 crore," said Saugata Chatterjee, Co-Chief Business Officer, Nippon India Mutual Fund.
“This (high inflows in equity funds) perhaps is due to the continued interest in retail and HNI investors to make use of market opportunities and enter in corrections for better valuations. On-Going Russia-Ukraine crises has kept the market volatile giving advantage to investor in making higher allocations or re-balance their existing allocations. All said, risk-appetite for equities is certainly on rise which is very healthy for markets and investors for long term wealth creation,” said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.
SIP and AUM trend
- Monthly SIP inflows touched a new all-time-high of Rs. 12,327 crore in March
- Average monthly AUM declined to Rs. 37.70 lakh crore from Rs. 38.60 lakh crore in February
- SIP AUM rose from Rs. 5.50 lakh crore in February to Rs. 5.80 lakh crore in March
- A total of 10.4 lakh new SIP accounts were added last month
Equity funds
Equity funds received a net inflow of Rs. 28,463 crore in March compared to Rs. 19,705 crore in February. Like the previous month, all scheme categories registered net inflows. Multicap funds were the top gainer with a net inflow of Rs. 9,695 crore, thanks to SBI's multicap NFO which alone received Rs. 8,170 crore. Largecap and large & mid schemes were the other big gainers.
Debt funds
In March, Rs. 1.14 lakh crore went out of debt funds on a net basis. The outflow, according to AMFI, was mostly due to redemptions by corporates for advance tax payments. Liquid funds recorded the highest net outflow at Rs. 44,604 crore, followed by overnight and corporate bond funds. All debt fund categories recorded net outflows.
Hybrid funds
Hybrid funds also ended FY 2021-2022 on a low note. They together registered a net outflow of Rs. 3,604 crore as arbitrage funds lost a net of Rs. 6,797 crore last month.
