SIP flows surge 39 per cent YoY in November, monthly SIP contributions at Rs 25,320 crore: Report
Dec 13, 2024
New Delhi [India], December 13 : The Mutual Fund (MF) industry in India has achieved significant milestones, as Systematic Investment Plan (SIP) flows surged 39 per cent in November compared to the same period last year, says a report by Motilal Oswal.
The report noted that with assets under management (AUM) crossing Rs 68 lakh crore the Monthly SIP contributions in November this year stood at Rs 25,320 crore, showcasing the growing popularity of this investment route among retail investors.
It said "Mutual Fund Industry crossed Rs 68 lakh cr AUM, Monthly SIP flows at Rs 25,320 cr, Mutual Fund AUM and SIP Flows are up 48 & 39 per cent in last 1 year respectively".
The mutual fund industry has witnessed robust growth over the past year, with total AUM increasing by 48 per cent.
The report also shared that SIP flows have outpaced non-SIP monthly gross flows, growing at 48 per cent compared to the 12 per cent growth in non-SIP flows during the same period. While non-SIP flows saw a dip in November, SIP contributions accounted for approximately 2 per cent of the total inflows into mutual funds.
Since March 2021, the total mutual fund AUM has grown at a compound annual growth rate (CAGR) of 23 per cent. Equity mutual funds have been a major contributor, accounting for 45 per cent of the total AUM.
Over the past year, equity AUM increased by 50 per cent, or Rs 10 lakh crore, reaching Rs 30 lakh crore. On average, equity AUM has shown a month-on-month growth of 3%.
The report stated that the redemptions in equity mutual funds have declined over the past year but still constitute around 42 per cent of total monthly flows.
Despite this, all equity categories recorded an increase in the number of folios in November 2024, indicating continued investor interest in equity funds.
The mid-cap funds witnessed the highest growth in folios, with 6,06,430 new folios added in November 2024, reflecting strong demand for this segment.
The report data highlighted the resilience of the Indian mutual fund industry, with consistent growth in AUM and SIP contributions, as well as increased participation across equity categories.
The trends highlight the evolving investment preferences of Indians, who are increasingly opting for systematic and disciplined investment methods to build wealth.
