Mutual Fund SIP Inflows again Hit Rs.25,000 Crore for Two Consecutive Months
The mutual fund industry of India has shown great performance in November 2024. For the second successive month, monthly SIP contributions in mutual funds exceeded the Rs.25,000 crore mark. Total SIP inflows stood at Rs.25,320 crore in November 2024, just about equalling the record reached in October at Rs.25,323 crore.
Record Growth in SIP Accounts
The number of SIP accounts touched an all-time high of 10.22 crore in November, up from 10.12 crore in October and 9.87 crore in September. This milestone records a further increase in the preference for systematic investment among Indian investors, validating the relevance of mutual funds as a tool for long-term wealth creation.
Retail Participation Reaches New Highs
Retail mutual fund folios, comprising equity, hybrid, and solution-oriented schemes, also touched a record-high figure of 17.55 crore in November compared to 17.23 crore in September. Similarly, the retail assets under management for the same categories rose to Rs.39.70 lakh crore in November from Rs.39.19 lakh crore in October.
The SIP AUM stood at Rs.13.54 lakh crore at the end of November. In spite of a tough equity market, investors have been committed to continuous investing. The mutual fund industry has seen new registration for almost 49.46 lakh SIPs in November. However, these figures fell below those for the same month last year when 63.69 lakh new registrations took place.
The overall AUM for the mutual fund industry had grown marginally, increasing from Rs.67.25 lakh crore in October to Rs 68.08 lakh crore in November. Open-ended equity-oriented schemes made a notable contribution by showing an increase of 1.56% in AUM. Net inflows for the thematic funds, on the other hand, were the highest among all equity categories at over Rs.7,000 crore.
Overall, the number of mutual fund folios reached an all-time high of 22.08 crore in November as confidence among retail and institutional investors was rising. Though the average assets under management (AAUM) for November stood at Rs.68.04 lakh crore, this was slightly lower than October’s Rs 68.50 lakh crore due to market fluctuations.
Investors Show Long-Term Commitment
The consistent SIP inflows indicate an optimistic investor sentiment toward mutual funds as a useful tool in wealth creation. Experts said that mutual fund AUM is 18.1% of India’s GDP, which is much lower compared to other countries. This means there is a lot of potential for mutual funds to grow in India.
They also stressed the need for investors to stay disciplined and choose the right mix of investments based on their financial goals and risk levels. Despite short-term market volatility, the focus remains on the long-term benefits of staying invested, pointing out that time in the market is more valuable than trying to time it.
The Indian mutual fund industry continues to grow steadily, with retail participation at its core. The consistent rise in SIP contributions, coupled with increasing folios and AUM, paints a promising picture for the industry’s future. Investors’ unwavering trust in mutual funds underscores their potential as a reliable avenue for achieving financial goals.
