Mutual Funds: Inflows into equity schemes fell 10%; SIPs hit all-time high in Sept

Inflows into equity schemes fell by 10 percent in September to ₹34,419 crore from ₹38,239 crore in the preceding month, reveals the data released by the Association of Mutual Funds in India (AMFI) on Thursday. Meanwhile, inflows into mutual funds via systematic investment plans (SIPs) hit an all time high of ₹24,508.73 crore in Sept, shows the data. 

Inflows into small cap schemes stood at ₹3,070 in Sept in contrast to ₹3,209 crore in the preceding month. However, inflows in mid cap schemes rose in Sept to ₹3,130 crore from ₹3,054 crore in August.

Meanwhile, large cap funds saw a considerable fall of 54.6 percent from ₹3,901 crore in August to ₹1,769 crore in September.

The categories that saw an increase in inflow include value mutual funds and multi cap mutual funds. The value mutual funds saw an increase from ₹1,728 crore in Aug to ₹1,964.35 in Sept.  At the same time, inflows into multi cap mutual funds saw a spike of 41.77 percent to ₹3,508.8 crore in September.

As we can see in the table above, inflows into equity schemes stood at ₹34,419 crore and debt schemes saw an outflow of ₹1,13,833.95 crore in September, 2024.

New SIPs

The SIP contribution stood at an all-time high of ₹ 24,508.73 crores in Sept 2024 as against ₹ 23,547.34 crores in Aug 2024. The number of SIP accounts touched 9,87,44,171 in Sept 2024 as compared to 9,61,36,329 in Aug 2024

Last month, a total of 27 open ended mutual fund schemes were launched, raising a total of ₹ 14,575 crores.

Additionally, the number of new SIPs registered stood at 66,38,857.The SIP AUM is highest ever at ₹ 13,81,703.94 crores for September as compared to ₹ 13,38,944.73 crores for August.

Venkat Chalasani, Chief Executive, AMFI, said, “The industry assets rose to a new high, with an asset base of ₹67.09 lakh crore at the end of Sept 2024. The Mutual Fund industry is proud to reach milestone of 5,01,22,609 unique investors. This, along with folio count surpassing 21 crores, underscores the efforts taken by the AMCs and distributors to spread financial awareness. The steadily increasing SIP contribution of INR 24,508.73 crores in Sept 2024 highlights the shifting investor sentiment towards disciplined and long-term wealth accumulation.”

Akhil Chaturvedi, Executive Director & Chief Business Officer, Motilal Oswal AMC, said, "Small-cap and mid-cap funds saw relatively stable inflows, while multi-cap funds attracted increased investments, reflecting a shift towards more diversified portfolios. The overall assets under management remained robust, suggesting that investors continue to actively participate in the market while balancing risk and opportunity across different fund categories."

Soumitra Sengupta, smallcase Manager and Founder at Lamron Analysts, said, “By and large the data shows that there has been a net outflow from equity funds. This could be due to the fact that investors are in fatigue and nervously looking to protect the gains they have made so far. The overall political climate both international and domestic also has contributed to this investor nervousness.”

In the month of August, open-ended equity mutual fund inflows rose by 3 per cent to ₹38,239.16 crore.