The asset under management (AUM) of the systematic investment planning (SIP) accounts have touched a record Rs 5 lakh crore in July 2021. This is following a sustained inflow and buoyancy in the capital market.
With a record inflow of Rs 9,608 crore in July, the total SIP inflow has reached the magical figure of Rs 1 lakh crore in the past 12 months. The average portfolio value of SIP investors was about Rs 1.2 lakh in July, the highest since data was made available by AMFI.
The SIP AUM has grown by over 30 per cent annually in the past five years compared with around 16 per cent gain in the total industry AUM.
Says Kavitha Krishnan, Senior Analyst â€“ Manager Research, Morningstar India, “While we have seen a steady increase in the SIP flows, a significant portion of the inflows are attributable to the NFOs that were launched over the past month. An improving investor sentiment, driven by a surge in the markets and a positive investor response towards NFOâ€™s have contributed to the inflows over this period.”
Driven by the equity backed schemes, the total AUM for mutual funds has breached the mark of Rs 35 lakh crore for the first time, with retail AUM hitting a record Rs 16.3 lakh crore or 46 per cent of the total AUM.
The share of pure equity schemes in the total AUM rose by 600 basis points to 33 per cent in July 2021. This was 27 per cent in July 2020.
The SIP AUM has outperformed the pure equity fund AUM by a wide margin in the past 12 months due to robust inflows. Around 90-95 per cent of the SIP AUM is linked to the equity funds.
Also, in July, a record 23.8 lakh new SIP accounts were opened. This is quite high compared to the monthly run-rate of 10 lakh. The SIP inflow in the first seven months of 2021 stands at about Rs 61,000 crore.