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While the industry has been witnessing record monthly gross SIP inflows every month, the net SIP inflows declined to less than 50% in FY 2024 largely due to redemption from SIP accounts.
An analysis of industry data reveals that the MF industry has received gross SIP inflows of Rs.1.99 lakh crore of which more than Rs.1.11 lakh crore has been redeemed from the SIP accounts. As a result, the net SIP inflows of the MF industry stood at 44% of the gross SIP inflows or close to Rs.88,000 crore in March 2024; this is down from 54% in FY 2023
In FY 23, the industry received gross SIP inflows of Rs.1.56 lakh crore of which, Rs.72,000 crore was redeemed from SIP accounts taking the net SIP inflows to close to Rs.84,000 crore.
Let's look at this table to know more:
|
April-March |
April-March |
||||||
|
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 |
5,869 |
43% |
Dec-23 |
17,610 |
6,470 |
37% |
|
Jan-23 |
13,856 |
7,649 |
55% |
Jan-24 |
18,838 |
8,192 |
43% |
|
Feb-23 |
13,686 |
8,004 |
58% |
Feb-24 |
19,186 |
8,248 |
43% |
|
Mar-23 |
14,276 |
7,795 |
55% |
Mar-24 |
19271 |
9109 |
47% |
|
Total |
1,55,972 |
83,875 |
54% |
Total |
1,99,218 |
87,973 |
44% |
Figures in crore
SIP net inflows = Gross SIP inflows - outflows from SIP account through redemption and switches irrespective of when it was invested.
A CEO of a top fund house requesting anonymity points out that majority of SIPs inflows come in equity funds where a lot of action happens. “About one third of equity inflows come through SIPs. And the equity market remained robust throughout the year giving numerous opportunities to investors to book profits.”
Swarup Mohanty, Vice Chairman and CEO, Mirae Asset Investment Managers India jokingly said that India is a country of long-term investors having short term investing habit. He said, “Like lumpsum investments, many investors try to time the market in SIPs as well. However, as a concept, SIPs should not be used for short term profit booking. I think we need to create awareness about the utility and concept of SIP investing.”
