Net SIP inflows fail to impress, start the new FY with a decline

The MF industry received net SIP flows of Rs. 5,696 crore in May 2023, shows AMFI data. These inflows are 18% less than the net SIP flows seen in April 2023. The resultant net-to-gross ratio also dipped. 

Comparing the inflows with the corresponding month of the last year reveals a similar trend. While the net-to-gross ratio was 57% in April 2022, it was 51% in April 2023. Likewise, the net-to-gross ratio was 39% in May 2023 as against 66% in May 2022.

Moreover, the MF industry received Rs. 7,795 crore net flows, as against Rs. 14,276 crore gross flows in March 2023. A net-to-gross ratio of 55%, which is higher than April and May 2023.

* Figures in crore

Citing market volatility as the key reason behind this decline, Celso Fernandes of Nave Marg Financial Consultant said, “The markets have delivered a poor performance in the last two years and investors booked profits immediately when the market went up, especially in the last month.”

Srikanth Matrubai of SriKavi Wealth added, “I observed many investors shifting from mutual funds to other investment avenues like gold and silver due to not so good performance.” 

Notably, the gross SIP flows of Rs. 14,749 crore in May 2023 are the highest so far. 

Category-wise details  

As on May 2023, the net-to-gross ratio was the highest in the case of solution-oriented schemes at 66%, and the least in the case of growth/equity schemes at 37%. 

* Figures in crore