Mutual fund SIP contribution hits record Rs 11,305 crore

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NEW DELHI: The systematic investment plan (SIP) for December 2021 hit its highest ever at Rs 11,305.34 crore, crossing Rs 11,000 crore mark for the second consecutive month.

Amfi data released for the month of December said investors invested a net Rs 25,076.71 crore from equity oriented funds thanks to consistent flows to the new fund offers (NFOs). Equity mutual funds saw a total inflow of Rs 43,579.50 crore and outflow of Rs 18,502.79 crore.

All fund categories saw inflows during the year led by multicap funds that saw a net inflow of Rs 10,516.32 crore. Sectoral funds and flexi cap funds were among the next biggest recipients. The month saw NFOs of six funds in the equity segment.

NS Venkatesh, Chief Executive, Amfi said SIP has been the favourite medium of consistent investing and disciplined mode of savings by the common man. “This is evident from the number of accounts rising. Through regular financial literacy retail investors are understanding the nuances of managing market volatility and risk adjustment through SIP.”

Incidentally, the debt segment saw withdrawal of money in December, a trend consistent with quarter ending months and many corporates withdraw money to pay off their obligations. Debt schemes saw net outflow of Rs 49,154.10 crore. Low duration funds and banking and PSU fund categories saw the biggest withdrawals.

Thanks to the continuous inflows, domestic institutional investors, which mostly comprise mutual fund managers, bought stocks worth Rs 31,231 crore in December. This contrasts with withdrawal of Rs 19,026 crore from foreign portfolio investors.

Total AUM of the mutual fund industry also fell Rs 4,350.03 crore to Rs 37.72 lakh crore at the end of August. A part of the loss could also include mark-to-market losses or gains for the industry.

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