The redemptions from systematic investment have dipped 19.50 per cent to ₹6,207 crore last month against ₹7,705 crore in December even as the SIP asset under management dropped steadily for last two months. This reflects growing investors’ confidence in monthly saving through mutual funds.
Despite volatile market, net SIP inflows into equity schemes increased 27 per cent to ₹6,284 crore last month against ₹4,972 crore in December and ₹2,276 crore in the previous month. Debt funds net inflow via SIP jumped to ₹270 crore against ₹11 crore in the previous month and ₹170 crore in November, according to data sourced from the Association of Mutual Funds in India.
SIP equity AUM
SIP equity asset under management was down to ₹5.81 lakh crore against ₹5.83 lakh crore in December and ₹5.91 lakh crore in November. The asset managed through SIP marginally dipped to ₹6.73 lakh crore last month against ₹6.74 lakh crore in December but was down two per cent compared to ₹6.84 lakh crore logged in November,
Gopal Kavalireddi, Head of Research at FYERS said despite the persistent selling by FIIs for last two years, domestic retail investors countered the negative impact of outflows through robust infusion into the equity markets through SIPs.
“While reallocation between categories was expected due to changing interest rate environment, equity investments continue to be the dominant choice for investors,” he said.
Anand Dalmia, co-founder, Fisdom, a wealthtech platform said the trajectory in overall net inflows into equities and through SIPs reflect retail investors’ commitment to investing and increasing maturity as volatility ceases to be a deterrent.
Buying at dips
Overall asset under management of mutual fund industry is down last month at ₹39.62 lakh crore against ₹39.89 lakh crore in the previous month and ₹40.37 lakh crore in November. Equity asset under management dipped three per cent last month to ₹15.06 lakh crore against ₹15.25 lakh crore in the previous month and ₹15.58 lakh crore in November.
Kavitha Krishnan, Senior Analyst – Manager Research, Morningstar India said investors preference towards investing in dips was more evident from the magnitude of flows into small and mid-cap stocks, considering that the Nifty Smallcap 100 was among the worst performers in December.
On an overall basis too, she said the markets last month ended in red, with most sectors witnessing negative returns except for IT and the autos sectors, she said.