SIP inflows hit a new milestone, crossing Rs 19,000 crore for the first time in February

The inflow into Systematic Investment Plans (SIP) has reached an all-time high, crossing Rs 19,000 crore for the first time in February. As per the latest data, the SIP investment stood at Rs 19,187 crore which is a significant rise from the previous month's Rs 18,838 crore.

SIP Investment

According to the Association of Mutual Funds in India (AMFI), the SIP assets under management (AUM) for February 2024 stood at Rs 10.52 lakh crore. The number of new SIP accounts also increased to 8.20 crore from 7.91 crore in January 2024.

CNBC-TV18 quoted financial experts and said that the surge in SIP investments is due to various factors like increased awareness about long-term wealth creation, the ease of investing through SIPs, and the market's overall positive sentiment.

“There is a surge in SIP accounts, totalling 8.20 crore with 49.79 lakh new SIP registrations. This underscores investors' unwavering commitment to disciplined wealth accumulation. The industry's net AUM has also reached Rs 54,54,214.13 crore in February", said Venkat Chalasani, Chief Executive, AMFI.

Inflow into Equity Mutual Fund

The funds flow into equity mutual fund also saw a 23% to Rs 26,865.78 crore in February. With this the inflow into equity mutual funds have remained positive for the 36th straight month since March 2021.

Also Read: Big surge in equity mutual fund inflows in January

The Association of Mutual Funds of India also revealed that both small cap and midcap funds saw robust inflows in February even after Sebi raised concerns over froth in the segments.

As per AMFI, inflows into into midcap funds dipped 12% but remained healthy at Rs 1,808 crore, while net investments into smallcap funds dipped 10% but came in at Rs 2,922 crore last month.

Inflow to equity asset and debt class

The Sectoral/Thematic Funds category saw the highest inflows of Rs 11,262.70 crore among the equity asset class. The five new schemes that were launched during the month cumulatively garnered Rs 7,178 crore during their NFO period.

"While gross purchases in the smallcap category continued to be robust over the month, the redemptions in the category were the third largest among the equity categories possibly due to investors opting to book profits on the back of a sharp uptick in the performance of this category," Melvyn Santarita, Analyst, Morningstar Investment Research India told Moneycontrol.

Likewise the largecap category also saw its third highest flows in 20 months with net inflows of Rs 921 crore in February 2024.

In the fixed income segment, debt funds saw net inflows of Rs 63,809 crore in February against Rs 76,469 crore net investments in January. The inflow into debt was positive largely due to Rs 83,642 crore investments into the short-term Liquid Fund category. This was followed by Rs 3,029 crore inflows into the Corporate Bond Category.

Meanwhile the Low Duration Funds saw outflows of Rs 4,100 crore, followed by RS 3,610 crore outflows from Floater Funds in February.