SIP investments in India above Rs 25,000 crore for 2nd month in a row

New Delhi (The Uttam Hindu): The inflow into systematic investment plans (SIPs) stood at Rs 25,320 crore in November in the country, almost similar to the October figures (Rs 25,323 crore), according to data from the Association for Mutual Funds in India (AMFI) on Tuesday.

In November, the mutual fund industry's total assets under management (AUM) increased to Rs 68.08 lakh crore in November from Rs 67.25 lakh crore in October, as per the data by the AMFI.

In October, the SIP investments crossed Rs 25,000 crore for the first time in the country. The continuously increasing SIP figure shows that people prioritise investing in mutual funds through SIP.

The share of direct plans in SIP accounts have reached around 40 per cent, from nearly 21 per cent four years ago.

As per industry data, the AUM linked to direct plan SIPs increased to Rs 2.7 lakh crore by October 2024, from Rs 29,340 crore in March 2020.

During this period, the share of direct plans in SIP AUM increased by 12.2 per cent to 20.3 per cent.

The number of SIP accounts stood at its highest ever at 10.12 crore in October. It was 9.87 crore in September.

Motilal Oswal AMC Executive Director and Chief Business Officer Akhil Chaturvedi said that there was heightened volatility due to various macroeconomic factors, geo-political events and US election results.

"This resulted in investors opting for a wait and watch approach while allocating larger amounts and thus decline in lumpsum flows including flattish SIP numbers for November,” he said.

Equity-linked Savings Schemes (ELSS) saw an increase in inflows, rising to Rs 618.5 crore in November from Rs 362 crore in October.

Meanwhile, small-cap funds experienced a 9.0 per cent increase in November, rising from Rs 3,772 crore to Rs 4,112 crore.

Mid-cap funds also saw a slight increase of 4.3 per cent, climbing from Rs 4,683 crore to Rs 4,883.4 crore.