SIP inflows scale record high of Rs 16,402 crore, ETF contributions nearly double

Exchange Traded Funds (ETFs) rallied the most with inflows shooting up to Rs 3,243 crore from Rs 1,863 crore month-on-month.

Funds flow into Systemic Investment Plans (SIPs) reached an all-time high of Rs 16,402 crore in September, beating the earlier record of Rs 15,814 crore posted last month, according to the data from the Association of Mutual Funds in India (AMFI).

Exchange Traded Funds (ETFs) rallied the most with inflows shooting up to Rs 3,243 crore from Rs 1,863 crore month-on-month. Contribution to dividend and ELSS funds too jumped to Rs 255 crore and Rs 141 crore, but corporate bond funds lost Rs 2,460 crore and Rs 111 crore respectively.

Equity mutual funds continued to see net inflows in September, the 31st month in a row. Although there was a marginal decrease from August, the inflow stayed healthy at Rs 13,857 crore. While both midcap and smallcap funds had good inflows, their largecap peers recorded outflows. Smallcap funds received Rs 2,678 crore in September, which was lower than Rs 4,265 crore a month back, and midcap funds had a decrease from Rs 2,512 crore to Rs 2,001 crore.

Corporate bond funds saw an outflow of Rs 2,460 crore in September as against an inflow of Rs 1,755 crore last month.

The strong surge in overall SIP inflows has caught the attention of both seasoned and new investors. The investment tools remained popular for a long time because of the consistent discipline shown by investors. Even when the stock markets have gone up in price, people continued to use the systematic approach of these funds.

SIP is an investment methodology offered by mutual funds where an individual can invest a fixed amount in a chosen scheme periodically at fixed intervals, say, once a month, instead of making a lump sum, one-time investment. The instalment amount can be as small as Rs 500 a month.