The monthly inflow into mutual funds through the Systematic Investment Plan (SIP) route rose by 0.21 percent to a fresh high of Rs 26,688 crore in May, latest data from AMFI showed on June 10, despite a drop in inflows into the equity category.
Further, the number of contributing SIP accounts in May rose to 8.56 crore against 8.38 crore in the previous month. The monthly SIP inflows for April were at Rs 26,632 crore.
"The underlying trend remains robust. Strong SIP inflows, which we have witnessed in recent times, can be expected to continue. This continues to reflect investors’ long-term commitment to equities. The moderation in monthly flows (equity funds) appears more cyclical than structural, and with macroeconomic indicators largely supportive, flows into equity funds could regain momentum in the coming months," said Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India.
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The total SIP assets under management (AUM) rose to Rs 14.61 lakh crore against Rs 13.90 lakh crore in April. The SIP AUM was around 20.24 percent of the total AUM of the mutual fund industry as against 19.9 percent in April.
The mutual fund industry also saw a lower SIP stoppage ratio after months, as according to AMFI data, 59 lakh accounts were opened during May, while 43 lakh SIP accounts were either stopped or matured during the month. Total SIP accounts now stand at 9.06 crore as of May.
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The net inflow into open-ended equity mutual funds fell 21.66 percent to a one-year low of Rs 19,013.12 crore in May over a month ago, as per data by AMFI.
However, the overall net assets under management (AUM) of the mutual fund industry rose to Rs 72.20 lakh crore for the first time against Rs 69.99 lakh crore in April.
Overall, the mutual fund industry saw a net inflow of Rs 29,108.33 crore in May.
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