Significant inflows witnessed in equity mutual funds as SIP contributions reach an all-time high

Equity mutual funds experienced strong inflows in September 2022. Even the SIP contribution was at an all-time high. Read on to find out more.

If we look at the FII and DII data for the month of September 2022, then FIIs were net sellers, whereas DIIs were net buyers. Foreign Institutional Investors (FII) sold shares worth Rs 18,308.3 crore. Domestic Institutional Investors (DII) bought Rs 14,119.75 crore worth of shares.

This is very well reflected in the inflows data of mutual funds as published by the Association of Mutual Funds in India (AMFI). Equity mutual fund inflows clocked a month-on-month (MoM) growth of a whopping 130% and 62.5% year-on-year (YoY). The inflows of equity mutual funds stood at Rs 14,099.73 for September 2022 as against Rs 6,120 crore in August 2022 and Rs 8,677 crore the same month last year.

The higher inflows in the equity fund are heavily contributed by sectoral and thematic funds, registering inflows of Rs 4,418.61 crore, followed by the flexi-cap fund and mid-cap fund both contributing inflows of Rs 2,401.2 crore and Rs 2,151.15 crore, respectively.

Debt funds on the other hand faced an outflow of Rs 65,372.4 crore in September 2022. This was more or less the same as in September 2021 when the outflows from the debt funds were Rs 63,910.23 crore. However, in the month of August 2022, it was blessed with a positive inflow of Rs 49,164.29 crore.

Looking at the Systematic Investment Plan (SIP) data, it registered an all-time high monthly contribution of Rs 12,976 crore in September 2022. In fact, the total SIP accounts stood at 5.84 crore and 23.66 lakh were newly registered SIPs.

Having said that, the SIP Assets Under Management (AUM) stood at Rs 6.35 lakh crore in September 2022. This is around 0.7% lower than the August 2022 AUM. However, on a quarterly basis, it witnessed a rise of 10%.

Speaking with the reporters on Monday NS Venkatesh, Chief Executive, AMFI said, “SIP numbers look healthy with the highest ever contribution at Rs 12,976.34 crore a month. We are hopeful that we will touch the Rs 13,000 crore per month mark in contribution in the coming months.”