SIP inflows reach record high of Rs 26,688 crore in May

New Delhi

Systematic Investment Plan (SIP) inflows in India hit an all-time high of Rs 26,688 crore in May, surpassing April’s Rs 26,632 crore, as per data released by the Association of Mutual Funds in India (AMFI) on Tuesday.

The rising SIP inflows indicate a growing preference among investors for long-term mutual fund investments. The total number of SIP accounts contributing also rose to 8.56 crore in May from 8.38 crore the previous month.

Narender Singh, Founder of Growth Investing, noted, "Investor preferences are evolving with a clear tilt towards equity and hybrid funds, driven by a long-term growth outlook and cautious approach on debt. Retail participation is surging, making the mutual fund revolution mainstream."

Total assets under management (AUM) for SIPs increased from Rs 13.90 lakh crore in April to Rs 14.61 lakh crore in May, accounting for 20.24% of the mutual fund industry’s total AUM, up from 19.9% in April.

However, the SIP stoppage ratio slightly weakened, with around 59 lakh SIP accounts closed in May compared to 43 lakh accounts maturing or closed. The overall number of SIP accounts in May stood at 9.06 crore.

Akhil Chaturvedi, Executive Director at Motilal Oswal AMC, commented, "SIP numbers crossing Rs 26,000 crore are very encouraging, indicating a strong investor preference for SIP over lump-sum investments."

Meanwhile, equity mutual fund AUM climbed to Rs 72.2 lakh crore in May, marking a 4.85% increase from nearly Rs 70 lakh crore in April.