Net to gross SIP inflows strengthen in the last month, ratio improves to 53% in Nov 2023

The latest industry data shows the strengthening of the net to gross SIP ratio in November 2023. It increased to 53% from 51% in October 2023. Notably, the industry has been reporting a month-on-month increase since August 2023.  

However, accounting for the total inflows from April 2023 to November 2023, the industry reports a net to gross ratio of 45%, which is lower than the 54% reported in the corresponding period of the previous year. 

Sensing investors’ interest in direct equity to be one of the reasons, Bengaluru MFD Srikanth Matrubai of SriKavi Wealth said, “Except for an interim fall, markets have largely been on a run since 2020. Anticipating a similar trend, investors now find direct equity more lucrative than exposure through mutual funds. Moreover, investors also have the option to invest in stocks through SIPs just like mutual funds which makes them even more keen to invest in stocks directly.”

Nashik MFD Amalaraj Marian of AMFinserve Financial Services said, “I have come across investors who recently availed loans for property and stopped their SIPs for servicing EMIs. Also, the number of real estate projects have gone up sharply in Nashik and they do a lot of marketing campaign to entice people.”

Here is how the industry ratio changed in the recent past. 

* Rs in crore

Net to gross ratio across fund categories 

The ratio is above 50% across all categories. It is the highest at 70% in the case of solution-oriented schemes and stands the least at 52% in the case of growth/equity schemes. 

* Rs in crore

** SIP net flows = SIP gross inflows for the reporting month (i.e. amount collected) Less Outflows of assets procured through SIP mode i.e. redemption and switch out processed during the reporting month in respect of units procured through SIP mode, irrespective of the period in which the units were procured