SIP Contributions Reach New High In May: AMFI Data

Monthly contributions to the SIP increased 7.44% to Rs 14,749 crore in May, reclaiming the Rs 14,000-crore mark.

<div class="paragraphs"><p>(Source:&nbsp;<a href=";utm_medium=referral&amp;utm_content=creditCopyText">Towfiqu barbhuiya</a> on <a href=";utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>)</p></div>
(Source: Towfiqu barbhuiya on Unsplash)

Systematic investment plan contributions to mutual funds reclaimed the Rs 14,000-crore mark to reach their highest ever level in May, according to data shared by the Association of Mutual Funds in India on Friday.

However, inflows into equity mutual funds halved sequentially to a seven-month low in May, even as benchmark indices gained during the month. The outflows in large-cap and focused funds contributed to the muted net inflows in the equity mutual fund space.

Subdued contributions from new offers also led to a dip in equity inflows for mutual funds during May. The month saw one new fund offer mobilising funds to the tune of Rs 174 crore. In contrast, a new offer had injected Rs 1,612 crore in equity funds during April.

Net investment into equity and equity-linked schemes fell 50% from the previous month to Rs 3,240.3 crore in May, according to AMFI.

The S&P BSE Sensex and the NSE Nifty 50 had grown 2.07% and 2.13%, respectively, in May.

SIP Contribution

Monthly contributions to the SIP increased 7.44% to Rs 14,749 crore in May. With this, mutual fund SIP contributions in May have reclaimed the Rs 14,000-crore mark.

Average monthly SIP inflows so far this year stand at 14,059.03 crore.

"This is the highest SIP contribution we have seen. It is due to the trust shown by retail investors," NS Venkatesh, chief executive officer at AMFI, said in a press briefing.

Venkatesh exuded confidence that SIP contributions into mutual funds would see an upward movement going forward.

Category-Wise Trends

Large-cap funds witnessed outflows of Rs 1,362.28 crore and focused funds witnessed a Rs 943.8 crore outflow in May, becoming the primary reasons behind the steep drop in overall equity mutual fund inflows. Meanwhile, small-cap inflows swelled to Rs 3,282.5 crore during May from Rs 2,182.44 crore in the previous month.

Debt Funds

After one month of growth, inflows into liquid funds—which businesses use to store short-term cash—dipped in May. Liquid funds registered inflows of Rs 45,234.22 crore against Rs 63,219.33 crore in the previous month.

Credit-risk funds witnessed outflows for the second month on a trot at Rs 289.5 crore in May. These schemes recorded outflows of Rs 356.12 crore in April.

Net Flows

Cumulatively, mutual fund schemes saw inflows of Rs 57,420.46 crore in May, compared to Rs 1.21 lakh crore in April.

Money market funds saw inflows worth Rs 8,731.06 crore in May, compared with inflows worth Rs 13,960.96 crore in April.

The average assets under management stood at Rs 42.95 lakh crore in May, compared to Rs 41.53 lakh crore in April. Net AUM rose to Rs 43.2 lakh crore from Rs 41.62 lakh crore in the previous month.

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