SIP inflows hit all-time high of Rs 26,688 crore in May

New Delhi: Systematic Investment Plan (SIP) inflows reached an all-time high of Rs 26,688 crore in May, from Rs 26,632 crore in April, according to data released by the Association of Mutual Funds in India (AMFI) on Tuesday.

The highest-ever inflow of SIP shows that people are investing in mutual funds from a long-term perspective.

According to the AMFI data, the number of contributing SIP accounts increased to 8.56 crore in May, from 8.38 crore in the previous month.

“Investor preferences are evolving. There’s a clear lean toward equity and hybrid funds, driven by long-term growth outlooks and a cautious stance on debt. Retail participation is also surging. The mutual fund revolution is becoming mainstream,” said Narender Singh, smallcase Manager and Founder of Growth Investing.

The total assets under management (AUM) under SIP rose from Rs 13.90 lakh crore in April to Rs 14.61 lakh crore.

SIP AUM was around 20.24 per cent of the total AUM of the mutual fund industry in May — from 19.9 per cent in April.

According to the AMFI data, the SIP stoppage ratio weakened in May. About 59 lakh SIP accounts were closed in May, while SIPs were closed or matured for 43 lakh accounts. The total number of SIP accounts in May was 9.06 crore.

“SIP numbers over Rs 26,000 crore is very encouraging, which implies that the fresh investment preferred route has been SIP than lumpsum,” said Akhil Chaturvedi, Executive Director and Chief Business Officer, Motilal Oswal AMC.

Meanwhile, Assets Under Management (AUM) for equity mutual funds rose to Rs 72.2 lakh crore in May, up 4.85 per cent from nearly Rs 70 lakh crore in April.

Investors are staying invested, but becoming selective. Equity flows are slowing, debt is stabilising, and hybrid/passive categories are thriving. Market momentum and SIP discipline continue to support AUM growth, said analysts.

–IANS