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While the industry has been receiving record monthly inflows through SIP every month, the net inflows from SIP was less than 50% of the gross SIP inflows in April-December 2023.
An analysis of industry data reveals that of the total gross SIP inflows of Rs.1.42 lakh crore, the MF industry received net SIP inflows of Rs. Rs.62,400 crore in April-Dec 2023, which is 44% of the total SIP inflows.
The net to gross SIP inflows ratio was 53% in the corresponding period last year. The industry received net SIP inflows of Rs.60,400 crore as against gross SIP inflows Rs.1.14 lakh crore in April-Dec 2022.
Let's look at this table to know more:
|
April-December 2022 |
April-December 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% |
|
|
|
Oct-22 |
13,041 |
7,499 |
58% |
Oct-23 |
16,928 |
8,686 |
51% |
|
|
|
Nov-22 |
13,306 |
3,257 |
24% |
Nov-23 |
17,073 |
9,058 |
53% |
|
|
|
Dec-22 |
13,573 |
5,868 |
43% |
Dec-23 |
17,610 |
6,469 |
37% |
|
|
|
Total |
1,14,155 |
60,425 |
53% |
Total |
1,41,922 |
62,422 |
44% |
|
|
Figures in crores
SIP net flows = Gross SIP inflows - outflows from SIP account through redemption and switches irrespective of when it was invested
Pune MFD Sandeep Bhushetty of Chatur Investment attributes this to exit of do-it-yourself investors. He said, “Many people are now investing in mutual funds on their own without any advice. These direct investors discontinue their SIPs when they see not so good short-term performance.”
Another Pune MFD, Harshavardhan Bhusari of FIN PALS points out that many investors discontinue SIPs to pursue their investment options. He said, “Many investors stop their SIPs to participate in the current IPO frenzy. Another reason is profit booking. Whenever the market goes up, a few investors exit their SIPs to make quick money.”
Category-wise details
Goal or solution-oriented funds have better net to gross SIP inflows ratio. The category witnessed the highest net to gross SIP inflows ratio of 62%. One reason could be mandatory lock-in period in many of these schemes.
On the other hand, growth oriented funds have the lowest net to gross SIP ratio of 35%.
Here is the scheme wise net to gross SIP inflows.
|
Particulars |
Gross Inflows |
Net Inflows |
Net to Gross Ratio |
|
Growth / Equity Schemes |
14,551 |
5,078 |
35% |
|
Income / Debt Schemes |
803 |
324 |
40% |
|
Hybrid Schemes |
1,185 |
489 |
41% |
|
Solution Oriented Schemes |
178 |
111 |
62% |
|
Other Schemes |
893 |
467 |
52% |
|
Total |
17,610 |
6,469 |
37% |
Figures in crores
