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An analysis of industry data reveals that the net to gross SIP inflows of the MF industry is 42% in the first quarter of the current financial year.
While the industry received gross SIP inflows of Rs.62,500 between April and June 2024, the net SIP inflows stood at Rs.26,500 crore or 42% of the total gross SIP inflows in the first quarter of FY 2025.
The net to gross ratio has remained unchanged over the last one year. In FY 2023, this ratio was 42%. The industry received Rs.43200 crore of gross SIP inflows as against net SIP inflows of Rs.18,300 crore between April and June 2023.
Let us look at the table to know more.
|
April to June 2024 |
|||
|
Months |
Gross SIP inflows |
Net SIP inflows |
Net to gross ratio |
|
April |
20371 |
8660 |
43% |
|
May |
20904 |
9226 |
44% |
|
June |
21262 |
8581 |
40% |
|
Total |
62537 |
26467 |
42% |
|
April to June 2023 |
|||
|
Months |
Gross SIP inflows |
Net SIP inflows |
Net to gross ratio |
|
April |
13728 |
6977 |
51% |
|
May |
14750 |
5696 |
39% |
|
June |
14735 |
5608 |
38% |
|
Total |
43213 |
18281 |
42% |
SIP net inflows = Gross SIP inflows - outflows from SIP account through redemption and switches irrespective of when it was invested.
A Balasubramanian, MD and CEO, Aditya Birla Sun Life Mutual Fund feels that the net to gross SIP ratio of the industry has been less than 50% for very long time. This is largely due to maturity of existing SIP accounts and switching of schemes by investors. Redemption is not so high in SIPs, he added.
Bala said that as long as topline i.e. gross SIP inflows is strong, the industry should not worry about net SIP ratios.
A CEO of a top fund house requesting anonymity said that stellar performance of equity markets has led to redemption from SIP accounts.
Another CEO said that discontinuation of SIPs has increased due to the ongoing KYC issue. Many investors have seen their SIP contribution not debiting from their bank account.
