Dream run: SIP inflows top Rs 17,000 crore

financialexpress.com:

Systematic investment plans (SIPs) continued their dream run in November, with contributions crossing Rs 17,000 crore for the first time.

While the monthly contribution set a new record of Rs 17,073 crore, the SIP AUM (assets under management) also touched a new high of Rs 9.3 trillion, compared with Rs 8.6 trillion in October, data from the Association of Mutual Funds in India (Amfi) showed on Friday.

Net inflows into open-ended equity schemes fell to Rs 15,536 crore, compared with Rs 19,957 crore in October. Inflows into largecap funds were in the positive territory, but dropped to Rs 307 crore.

“Flows in this category have by and large been disappointing over the year as investors have perhaps opted for investing in this segment passively via index funds and the ETF route given their low cost,” said Melvyn Santarita, analyst, Morningstar Investment Research India.

Smallcap funds remained the prime pick for investors, with Rs 3,700 crore coming in, while midcaps also showed healthy inflows of Rs 2,666 crore.

Retail AUM (equity, hybrid, and solution-oriented schemes) stood at Rs 27 trillion as of November-end, with an average AUM of Rs 26.4 trillion during the month.

Open-ended debt schemes, however, saw erosion of Rs 4,706 crore. The money market category saw Rs 865 crore of net inflows while the long duration funds witnessed a mere Rs 87 crore in net inflows. Most of the debt schemes saw net outflows.

In October, the debt category had witnessed Rs 42,634 crore in net inflows, with liquid funds being the biggest beneficiary.

“Since the revision of tax laws, investments in fixed income funds have notably subdued. The uncertainty surrounding interest rates has further complicated investment decisions for investors.