When it comes to SIP, look at the gross inflows, not net, says AMFI's Venkat Nageswar Chalasani
Venkat Nageswar Chalasani, Chief Executive, AMFI, says 9.34 crore is the total number of accounts and Rs 24,000 crore is the total amount that has been raised in this particular month. If you derive that number, 24,000 divided by 9.33, it will be around Rs 2,500. So, it is just a mix. Some people are investing around Rs 1,00,000 and some people would be putting around Rs 500 to Rs 600 per month. The average, as I said, is derived and works out to around Rs 2,500. But this number is also growing. One year back, it was around Rs 2,200, today it is Rs 2,500.
My sincere compliments for all the great work which the Association of Mutual Funds of India (AMFI) is doing. Venkat Nageswar Chalasani: Thank you very much. Retail investors are coming into the mutual fund fold. In fact, on the SIP front, there are around 9.33 crore accounts as we speak now. The AUM under SIP is around Rs 13 lakh crore, around 20% of my total AUM.
Every month, we publish the gross inflows into SIPs. It was approximately Rs 24,000 crore in July. Now, a narrative is building up in the market. We saw some reports saying that the net SIP number is important, not the gross SIP. But when we give the number of Rs 24,000 crore, it is cumulative of the inflows that are coming into SIPs from these 9.33 crore accounts. That is the gross inflow.
The outflows are a cumulative figure. So, if somebody invested in SIPs five years back and decides to put in Rs 10,000 every month,, that is Rs 1,20,000 per annum and for five years, it translates into Rs 6,00,000.
