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An analysis of industry data reveals that the MF industry has received net SIP inflows of Rs. 38,209 crore in April-Sept 2023 as against Rs. 43,801 crore in April-Sept 2022, a decline of 13% or Rs. 5,592 crore.
The net to gross ratio of the MF industry has reduced from 59% in April-Sept 2022 to 42% in April- Sept 2023.
Let's look at this table to know more:
|
April-September 2022 |
April-September 2023 |
||||||
|
Month |
Gross SIP |
Net SIP |
Net to Gross Ratio |
Month |
Gross SIP |
Net SIP |
Net to Gross Ratio |
|
Apr-22 |
11,863 |
6,706 |
57% |
Apr-23 |
13,728 |
6,977 |
51% |
|
May-22 |
12,286 |
8,155 |
66% |
May-23 |
14,749 |
5,696 |
39% |
|
Jun-22 |
12,276 |
8,600 |
70% |
Jun-23 |
14,734 |
5,608 |
38% |
|
Jul-22 |
12,140 |
7,812 |
64% |
Jul-23 |
15,245 |
5,494 |
36% |
|
Aug-22 |
12,693 |
6,130 |
48% |
Aug-23 |
15,814 |
7,071 |
45% |
|
Sep-22 |
12,976 |
6,399 |
49% |
Sep-23 |
16,042 |
7,364 |
46% |
|
Total |
74,235 |
43,801 |
59% |
Total |
90,311 |
38,209 |
42% |
Figures in crores
Further, the data reveals that of the gross SIP inflows of over Rs.16,000 crore, the industry has witnessed net SIP inflows of Rs.7400 crore in Sept 2023.
SIP net flows = Gross SIP inflows - outflows from SIP account through redemption and switches irrespective of when it was invested
Mumbai MFD Viral Bhatt feels that many investors have booked profits due to exceptional performance of equity funds. He said, “Another reason is festive season. Many people want to spend money on cars, cloths and house repairing. This has led to discontinuation of SIPs and redemption from SIP accounts.”
He also points out that layoffs in the IT sector has also reduced the net SIP numbers in the first six months of the current financial year.
SIP Champion MFD Nikul Parmar who recently won the Cafemutual Big League Award attributes this to affinity of people towards real estate. He said that many people have redeemed or stopped their SIPs as they want to buy a house or start paying EMIs.
Category-wise details
Further analysis shows that, as on September 2023, the net to gross ratio was the highest for solution-oriented schemes (68%) and the least for growth/equity schemes (44%).
Let us look at the table to know more.
|
Particulars |
Gross Inflows |
Net Inflows |
Net to Gross Ratio |
|
Growth / Equity Schemes |
13,280 |
5,878 |
44% |
|
Income / Debt Schemes |
715 |
371 |
52% |
|
Hybrid Schemes |
1,075 |
523 |
49% |
|
Solution Oriented Schemes |
165 |
112 |
68% |
|
Other Schemes |
808 |
479 |
59% |
|
Total |
16,042 |
7,364 |
46% |
Figures in crores
