Mutual fund industry leads record SIP inflows; AUM grows over 3%

Mutual fundThe asset under management (AUM) of the mutual fund industry crossed Rs 36 lakh crore in August driven by high retail participation especially through systematic investment plans (SIPs). As per the monthly data released by industry body Association of Mutual Funds in India (AMFI), SIP contribution in mutual funds in August was at an all-time high of Rs 9,923.15 crore. 

The industry saw 24.92 lakh new SIPs registered throughout August, highest-ever in a month, taking the total number of SIP accounts to a record high of 4.32 crore. In the past one year, 1.02 crore SIP accounts have been added by the industry. Since April 2021 alone, 53 lakh SIP accounts have been added.

SIPs now account for Rs 5.26 lakh crore in AUM, almost a third of retail AUMs of Rs 17.15 lakh crore. Systematic investment plans, or SIPs, is a way of investing a fixed amount of money in mutual funds schemes at a regular interval. Monthly SIPs are also the most popular way of investment in mutual funds, especially, equity or equity-oriented mutual funds.

“Retail AUM at Rs 17.15 lakh crore, almost half of total industry AUMs, healthy rise in SIP Accounts and monthly SIP contribution being at an all-time high are reflective of rising retail preference towards mutual funds as a long-term wealth creation avenue,” N S Venkatesh, Chief Executive, Association of Mutual Funds in India stated.   

The total assets of mutual funds at the end of August 2021 stood at Rs 36.59 lakh crore compared to Rs 35.31 lakh crore at the end of July, registering a monthly growth of 3.6%.  Equity funds saw a net inflow of Rs 8,667 crore through the month while hybrid funds (asset allocation funds, balanced funds, arbitrage funds, etc) witnessed a net inflow of Rs 18,705 crore.

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