Agencies
The mutual fund (MF) gross inflows through the systematic investment plan (SIP) route topped the Rs 20,000 crore mark for the first time in a calendar month as investors opened a record 6.4 million SIP accounts despite a spike in market volatility. The number of accounts opened last month was almost 50 per cent higher than the registrations seen in March.
“India’s MF industry has reached yet another milestone with the SIP book crossing above Rs 20,000 crore in April 2024.
“It shows the MF industry has received higher acceptance from investors to invest their savings and create wealth in the long term via the SIP route,” said A Balasubramanian, managing director and chief executive officer, Aditya Birla Sun Life Asset Management Company (AMC).
The key benchmark indices ended April with nearly a 1.2 per cent gain despite registering a decline on four consecutive sessions ending April 18.
The two indices fell nearly 3.4 per cent during the four sessions.
However, the net inflows into active equity schemes were 16 per cent lower month-on-month at Rs 18,917 crore, largely due to higher redemptions from largecap funds and a decline in collections by new fund offerings.
According to D P Singh, deputy managing director and joint chief executive officer of SBI MF, the decline in net inflows indicates that some investors are opting to book profits and stay on the sidelines ahead of the election results.
“In a high-pitched political environment and market volatility, the smart money moves out.
“This is evident in the surge in redemptions in largecap funds and higher inflows into arbitrage funds,” said Singh.
Overall, the industry garnered inflows of Rs 2.4 trillion as liquid funds alone recorded inflows of Rs 1 trillion.
