Systematic Investment Plan (SIP) inflows into mutual funds fell marginally to ₹31,115 crore in April from ₹32,087 crore in March amid heightened volatility in equity markets.
The number of contributing SIP accounts also dipped slightly to 9.65 crore from 9.72 crore in March, data from Association of Mutual Funds in India showed. However, SIP assets rose to ₹16.85 lakh crore from ₹15.11 lakh crore despite sharp market swings and continued foreign portfolio investor outflows from India.
The number of discontinued SIP accounts stood at 51.21 lakh in April, marginally higher than the 50.71 lakh new SIP accounts opened during the month.
‘Not a slowdown’
Venkat Chalasani, Chief Executive, AMFI, said the higher number of SIP stoppages compared with new accounts could largely be due to Sebi norms under which a SIP is classified as discontinued if instalments are missed for three consecutive months.
He added that the March inflow figure was also elevated as it included the last four days of February, which were market holidays. AMFI believes it is too early to view the moderation in SIP inflows as a trend, though market volatility may have affected investor sentiment.
Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said the moderation in SIP inflows should not be seen as a slowdown, especially after the previous month’s higher base due to spillover inflows.
Sustained SIP inflows of around the ₹31,000-crore mark indicate continued retail participation in mutual funds, she added.
Equity mutual fund inflows also declined 5 per cent in April to ₹38,440 crore from ₹40,450 crore in March.
Resilient investors
A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC, said continued investor participation in mutual funds despite volatile market conditions reflects the growing maturity and resilience of retail investors, who are increasingly preferring diversified allocation strategies.
This shift indicates a balanced approach to wealth creation, with investors focusing on asset allocation, stability and long-term goal-based investing amid global uncertainty, he said.
Navneet Munot, MD & CEO, HDFC Asset Management Company said equity flows have held up well, reflecting the growing maturity of the investor base and deepening awareness about the merits of systematic investing.
While markets will always contend with geopolitical developments, the data suggests that long-term financial goals are increasingly guiding investment decisions over short-term noise, he added.
Gold & silver
Meanwhile gold ETFs attracted investments worth ₹3,040 crore in April compared with ₹2,265 crore in March, while outflows from silver ETFs moderated to ₹125 crore from ₹684 crore, as investors used the decline in prices to increase allocations.