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AMFI data shows the MF industry received net SIP flows of Rs. 83,875 crore during FY 2022-23 as against Rs. 47,619 crore during FY 21-22, a jump of almost 2x.
Notably, the net to gross ratio also strengthened from 38% in FY 2021-22 to 54% in FY 2022-23.
* Figures in crore
Correlating this trend with market performance, MFD Chokkalingam Palaniappan of Prakala Wealth, Chennai said, “There was a poor market appreciation during FY 2022-23 as against FY 2021-22 where the markets ran high. Until and unless there is some pressing need, I have seen investors typically postpone redemptions or pause SIPs when the markets are down. They usually prefer withdrawing when the market is high.”
Mumbai MFD Sadashiv Phene added, “The rising trend is also largely attributed to increasing awareness amongst investors about the benefits of SIPs. Investor awareness programs of AMFI and AMCs and distributor’s nudging appear to be paying off.”
Category-wise details
Further analysis shows that, as on March 2023, the net to gross ratio was the highest for solution oriented schemes (76%) and the least for income/debt schemes (22%).
Growth/equity oriented schemes reported net to gross ratio 55%, more or less similar to that of the industry.
* Figures in crore
