SIP Inflows Soar to Record Rs 26,632 Crore in April, Says AMFI

India's mutual fund market saw its all-time high in Systematic Investment Plan (SIP) investments in April as investors added a record Rs 26,632 crore to SIP contributions, data published by the Association of Mutual Funds in India (AMFI) revealed on Friday. It was the largest-ever SIP inflow during a single month.

Even though 1.36 crore SIP accounts were closed or matured, investor interest was strong, with the number of active SIP accounts increasing to 8.38 crore in April from 8.11 crore in March. Furthermore, 46 lakh new SIP accounts were added, higher than the 40.19 lakh new accounts in March.

AMFI explained the rise in account closures was as part of a scheduled clean-up, and this is likely to fall sharply from May onwards.

Himanshu Srivastava, Associate Director, Morningstar Investment Research India, credited the consistent inflows to better investor sentiment, supported by good corporate results and strong macroeconomic conditions. He further added that the lack of large new fund offerings in April meant that investors were largely putting money into existing schemes, showing their faith in the long-term growth prospects of Indian equity markets.

The industry also recorded an increase in assets under management (AUM) to a record high of Rs 70 lakh crore in April, from Rs 65.74 lakh crore in March. This indicates high investor confidence in the market.

Large-cap schemes, which witnessed outflows earlier, witnessed a revival in April with net inflows of Rs 2,671.46 crore, marginally up from Rs 2,479.31 crore in March. This shows investors returning to relatively stable schemes.

Mid-cap schemes pulled in Rs 3,313 crore last month, down from Rs 3,438.87 crore the previous month. Small-cap schemes kept performing consistently, with Rs 3,999.95 crore pouring in, only slightly less than Rs 4,092 crore of the last month.

As a whole, the mutual fund segment is on the upswing with positive sentiment and ongoing enthusiasm for equities.