SIP contributions touch an all-time high; equity mutual funds witness strong inflow

In September 2022, equity mutual funds had significant inflows. The SIP contribution was also at an all-time high. Continue reading to learn more.

Looking at the FII and DII figures for September 2022, FIIs were net sellers, while DIIs were net buyers. Foreign Institutional Investors (FII) sold Rs 18,308.3 crore of shares, whereas Domestic Institutional Investors (DII) purchased shares worth Rs 14,119.75 crore.

This is very strongly represented in the mutual fund inflows data issued by the Association of Mutual Funds in India (AMFI). Inflows into equity mutual funds increased by a stunning 130 per cent month over month (MoM) and by 62.5 per cent year over year (YoY). Equity mutual fund inflows were Rs 14,099.73 crore in September 2022, compared to Rs 6,120 crore in August 2022 and Rs 8,677 crore in the same month previous year.

Sectoral and thematic funds, which had inflows of Rs 4,418.61 crore, contributed significantly to the higher inflows into equity funds. Flexi-cap funds and Mid-Cap funds came in second and third, respectively, with inflows of Rs 2,401.2 crore and Rs 2,151.15 crore.

Debt Funds, on the other hand, had an outflow of Rs 65,372.4 crore in September 2022. This was similar to September 2021, when debt fund outflows totalled Rs 63,910.23 crore. But in August 2022, it experienced a positive inflow of Rs 49,164.29 crore.

According to Systematic Investment Plan (SIP) data, the highest monthly contribution of Rs 12,976 crore was recorded in September 2022. In fact, there were 5.84 crore SIP accounts overall, and 23.66 lakh of those were newly registered SIPs.

And yet, as of September 2022, the SIP Assets Under Management (AUM) were at Rs. 6.35 lakh crore. This is around 0.7 per cent less than the August 2022 AUM. However, it increased by 10 per cent on a quarterly basis.

Speaking with the reporters on Monday NS Venkatesh, Chief Executive, AMFI said, “SIP numbers look healthy with the highest ever contribution at Rs 12,976.34 crore a month. We are hopeful that we will touch the Rs 13,000 crore per month mark in contribution in the coming months.”