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  • MF News Net SIP inflows is 40% of the gross SIP inflows

    Net SIP inflows is 40% of the gross SIP inflows

    Over the last one year, the MF industry received net inflows of over Rs.50,000 crore through SIPs.
    Abhishek Kumar May 23, 2022

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    In the last one year, industry has received a net SIP inflow of Rs. 51,290 crore compared to a gross inflow of Rs. 1.30 lakh crore. This implies that net SIP inflows was 40% of the gross inflows in the last one year (May 2021 to April 2022), shows AMFI data.

    Month

    Gross SIP

    Net SIP

    Net to gross ratio

    May-21

    8,819

    4,020

    0.46

    Jun-21

    9,155

    2,309

    0.25

    Jul-21

    9,609

    2,932

    0.31

    Aug-21

    9,923

    2,024

    0.2

    Sep-21

    10,351

    1,730

    0.17

    Oct-21

    10,519

    2,820

    0.27

    Nov-21

    11,005

    5,087

    0.46

    Dec-21

    11,305

    5,394

    0.48

    Jan-22

    11,517

    5,277

    0.46

    Feb-22

    11,438

    5,868

    0.51

    Mar-22

    12,328

    7,128

    0.58

    Apr-22

    11,863

    6,705

    0.57

    Total

    1,27,832

    51,294

    0.40

    *All numbers are in Rs crore

    The net SIP inflows in the first month of the new financial year (FY 2022-2023) was 56% of the gross inflows or Rs. 6,700 crore, shows latest AMFI data.

    The net SIP inflow in April was a bit lower than in March, when the industry recorded a net SIP inflow of Rs. 7,128 crore (highest in at least one year).

    The net SIP inflows have improved in tandem with the gross SIP inflows. Data shows that net SIP inflows stood at Rs. 4000 crore on May 2021 and rose to Rs. 5,400 crore in December 2021. In March 2022, the figure rose to Rs. 7,128 crore.

    The net to gross inflow ratio was similar in equity funds but varied for the rest of categories.

    In debt funds, net inflows were 40% of the gross collection. The data shows that redemptions of SIP investments were comparatively lower for solution-oriented and 'other' schemes. The net SIP inflows for both these categories was close to 74% of the gross inflows.

    Net and gross inflows (category wise) in April:

     

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    3 Comments
    Ashish Arora · 2 years ago `
    Thanks Abhishek, that precisely is the concern in this data point. SIP folios also have lumpsum purchases, as well as purchases through STP route. May seek clarification from AMFI to that effect so as to have clarity on resultant Net SIP sales. Otherwise though, your write-up is much appreciated.
    Ashish Arora · 2 years ago `
    Hi Abhishek, kindly help readers with defining Net SIP Inflow. Thanks!
    Abhishek Kumar · 2 years ago `
    Hi Ashish, there's no clear definition out there. AMFI just gives out the data every month. We spoke to industry officials and according to them, net SIP is gross SIP inflows minus redemptions from SIP accounts.
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