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Mutual Funds: SIP Inflows Breach 16,000-Crore Mark in September ’23

The Systematic Investment Plan (SIP) inflows in September 2023 touched an all-time high of Rs 16,042.06 crore; this highlights a marked rise from August 2023 when it was Rs 15,814 crore, as per the data of the Association of Mutual Funds in India (AMFI). 

As of September-end, the net Assets Under Management (AUM) of the industry logged 46.58 lakh crore, highlighting a 17% year-on-year (YoY) growth.

Many key factors have contributed to this spike.  The number of SIP accounts notched a new high of 7.12 crore in September 2023, as against 6.9 crore in August 2023. Mutual fund folios touched an all-time high of Rs 15.71 crore in September 2023 as compared to Rs 15.42 crore in August 2023. 

At the same time, the SIP AUM witnessed a significant rise, tipping at Rs 8.72 lakh crore in September 2023, a jump from Rs 8.47 lakh crore in August 2023. Incidentally, the number of new SIP registrations in September 2023 rose to more than 36 lakh, which remains an unprecedented number. 

Retail investors have shown a strong interest, and participation in the mutual fund industry is suitably highlighted through these numbers. Retail folios, including equity plus hybrid plus solution-oriented schemes, have scaled a new peak at 12.55 crore in September 2023 compared to  12.3 crore in August 2023.  

Also, retail AUM surged to Rs 25.38 lakh crore in September. However, the net inflow in equity funds in September 2023 stood at Rs 14,000 crore, a dip of 30% as compared to August 2023.

The inflows data underscores that investors’ confidence in mid- and small-cap funds continues to remain as both category funds witnessed more than Rs 2,000 crore net inflows in September 2023. 

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