SIP inflows hit 3-month high of Rs 31,800 crore, mark 64th straight month of gains

Gross flows through the systematic investment plan, or SIP, route jumped to nearly Rs 31,800 crore in June, a three-month high, according to data released by Amfi, the fund industry trade body. The highest gross monthly inflow through the SIP route this year, Rs 32,087 crore, was recorded in March.

The SIP surge came even as stock markets saw volatility during the month. Net inflows into equity mutual funds jumped 26% over May to almost Rs 29,000 crore, with investors favouring mid- and small-cap funds over other scheme types. June marked the 64th consecutive month of positive net flows into equity funds, a streak that began in March 2021.

‘The June data is a sign of growing investor confidence and the increasing adoption of disciplined, long-term investing through the mutual fund route,’ said Venkat Chalasani, chief executive of Amfi.

Mid-cap funds recorded a net inflow of Rs 6,090 crore, while small-cap and flexi cap funds saw net inflows of Rs 5,602 crore and Rs 5,231 crore, respectively. ‘Investors weren’t fleeing equities, they were rotating out of diversified/value mandates and into direct mid- and small-cap conviction bets during the market’s dip,’ said Viraj Gandhi, CEO of Samco Mutual Fund.

Retail assets under management, covering equity, hybrid and solution-oriented schemes, rose to Rs 49.4 lakh crore in June from Rs 47.9 lakh crore in May, while the fund industry’s overall net assets under management stood at Rs 82.2 lakh crore, up marginally from Rs 81.6 lakh crore the previous month.