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An analysis of industry SIP data reveals that the net SIP inflows of the MF industry is 54% of the gross SIP inflows. The MF industry has received SIP inflows of over Rs. 76,000 crore as against gross SIP inflows of Rs.1.42 lakh crore during April-February 2022.
According to the industry practice, the industry simply deducts outflows from SIP accounts to arrive at the net SIPs. It is not gross SIP inflows minus outflows due to SIP discontinuation.
Let’s have a look at the SIP numbers for the period April- February 2023:
|
Apr 2022 - Feb 2023 |
|||
|
Month |
Gross SIP |
Net SIP |
Net to gross ratio |
|
Apr-22 |
11863 |
6706 |
57% |
|
May-22 |
12286 |
8155 |
66% |
|
Jun-22 |
12275 |
8600 |
70% |
|
Jul-22 |
12140 |
7812 |
64% |
|
Aug-22 |
12693 |
6130 |
48% |
|
Sep-22 |
12976 |
6399 |
49% |
|
Oct-22 |
13041 |
7499 |
58% |
|
Nov-22 |
13306 |
3257 |
24% |
|
Dec-22 |
13573 |
5869 |
43% |
|
Jan-23 |
13856 |
7649 |
55% |
|
Feb-23 |
13686 |
8004 |
58% |
|
Total |
141695 |
76080 |
54% |
*All numbers are in Rs crore
Mumbai MFD Vinod Jain of Jain Privy Client believes that the difference between net SIP and gross SIP is due to increased EMIs. “One reason could be increase in interest rates, which eventually increased EMIs of investors. Many people who have bought houses, cars or other commodities on EMIs have discontinued or paused their SIPs. Another reason is direct investment. Many people who have invested through direct plans have paused their SIPs after seeing volatility.”
Further analysis shows that the net to gross inflow ratio of equity funds and debt funds was 57% and 58%, respectively. Interestingly, solution-oriented schemes and other schemes have highest net to gross ratio of 77% and 73%, respectively.
Net and gross inflows (category wise) in Feb 2023:
* Other Schemes: Includes FOF-Domestic
Year-on-year comparison
Net SIP inflows of the MF Industry improved over the last one year. The MF industry saw net SIP inflows of 36% in April-Feb 2022 compared to 54% in April-Feb 2023.
|
Apr 2021- Feb 2022 |
Apr 2022 - Feb 2023 |
||||||
|
Month |
Gross SIP |
Net SIP |
Net to gross ratio |
Month |
Gross SIP |
Net SIP |
Net to gross ratio |
|
Apr-21 |
8596 |
3030 |
35% |
Apr-22 |
11863 |
6706 |
57% |
|
May-21 |
8819 |
4020 |
46% |
May-22 |
12286 |
8155 |
66% |
|
Jun-21 |
9155 |
2309 |
25% |
Jun-22 |
12275 |
8600 |
70% |
|
Jul-21 |
9609 |
2932 |
31% |
Jul-22 |
12140 |
7812 |
64% |
|
Aug-21 |
9923 |
2024 |
20% |
Aug-22 |
12693 |
6130 |
48% |
|
Sep-21 |
10351 |
1730 |
17% |
Sep-22 |
12976 |
6399 |
49% |
|
Oct-21 |
10519 |
2820 |
27% |
Oct-22 |
13041 |
7499 |
58% |
|
Nov-21 |
11005 |
5087 |
46% |
Nov-22 |
13306 |
3257 |
24% |
|
Dec-21 |
11305 |
5394 |
48% |
Dec-22 |
13573 |
5869 |
43% |
|
Jan-22 |
11517 |
5277 |
46% |
Jan-23 |
13856 |
7649 |
55% |
|
Feb-22 |
11438 |
5868 |
51% |
Feb-23 |
13686 |
8004 |
58% |
|
Total |
112237 |
40491 |
36% |
Total |
141695 |
76080 |
54% |
*All numbers are in Rs crore
G Pradeepkumar, CEO, Union Mutual Fund attributes this to increased awareness about SIPs. “Many people have seen the benefits of SIPs. Also, SIPs have become integral part of their lives to achieve financial goals.”
SIP discontinuation
The MF industry received a total SIP contribution of Rs. 1.42 lakh crore between April 2022 and February 2023, 26% higher than the contribution of Rs. 1.12 lakh crore during the corresponding period in the last financial year.
However, the industry saw a decline in the number of new SIPs registered from 2.45 crore to 2.30 crore. Further, the number of SIPs that matured/were discontinued increased by 28% from 1.01 crore to 1.29 crore.
