Mutual Funds: SIP Inflow Hits All-Time High in May ’23

The inflow via the systematic investment plan (SIP) witnessed an all-time high at Rs 14,749 crore in May 2023, as per the data of the Association of Mutual Funds in India (AMFI).

Comparatively, these numbers in April and March stood at Rs 13,728 crore and Rs 14,276 crore, respectively.

Similarly, the number of SIP accounts recorded was 6.52 crore for May 2023 as compared to 6.42 crore in April 2023.

The SIP asset under management (AUM) registered at Rs 7.52 crore, as compared to Rs 7.17 crore in April 2023.

Experts stated that SIP inflows are once again gaining traction as they hit the Rs 14,000-crore mark after a brief lull phase in April, the recent uptick is buoyed by investors who continued their disciplined investing that kickstarted over two years ago.

For the full fiscal year FY23, SIP inflows recorded were 25.2% higher in comparison to FY22 and 62.3% higher when compared to FY21.

In all, the net inflows into open-ended mutual funds stood at Rs 59,879.31 crore in May 2023, as against Rs 1.24 lakh crore in April 2023.

At the same time, the net assets under management (AUM) of the industry witnessed an uptick at Rs 43.2 lakh crore, which was Rs 41.61 lakh crore in April 2023.

Baring the phase of the Covid-19 pandemic, SIP inflows have been witnessing a steady rise in the past few years.

In a mutual fund SIP, it is possible for an investor to invest in different company shares. This way, an investor gets a unit, which is like a share of the total amount of investments made by the mutual funds.

While being managed by a professional fund manager, mutual funds SIPs offer the benefit of diversification, which is possible across stocks and sectors.

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