Small caps saw considerable inflows, driven by retail investors looking for long-term returns, AMFI said, noting that the encouraging SIP numbers indicate their trust in mutual funds.
The inflow of funds into mutual fund systematic investment plans (SIPs) increased to Rs 13,856.18 crore in January 2023 from Rs 13,573.08 crore in the previous month, industry body the Association of Mutual Funds in India (AMFI) said in its monthly report.
AMFI data shows that the upward month-on-month trend in SIPs corresponds to the growth of mutual fund folios which are at a record high of 14,28,43,642.
In addition, the mutual fund industry’s assets under management (AUM) and the average assets under management (AAUM) stood at Rs 39,62,406 crore and Rs 40,80,311 crore, respectively.
Commenting on the positive trend, N.S. Venkatesh, chief executive of AMFI, said: “There has been an overall growth momentum in mutual fund folios. January 2023 data showcases a positive trend in the equity mutual fund inflows.”
Small caps saw considerable inflows, driven by retail investors looking for long-term returns, Venkatesh said, noting that the encouraging SIP numbers indicate their trust in mutual funds.
He said the momentum would likely continue and balance the outflow of funds from foreign institutional investors (FIIs) in the market.
Venkatesh said there is more awareness among investors today to create wealth in the long term through “goal-linked” SIP investments, “the simplest route” to build an investing habit.
In January alone, AMFI said, some 23 lakh new SIPs were registered, indicating the increasing investor belief in the instrument.
Key Highlights of the Report
· AFMI data further shows that retail AUMs (equity, hybrid, and solution-oriented schemes) stood at Rs 20,35,517 crore in January 2023, and the AAUM was Rs 20,65,262 crore.
· The total number of folios under retail schemes (equity, hybrid, and solution-oriented) were 11,43,32,946.
· Similarly, the number of SIP accounts rose by 9,20,163 to 6,21,62,694 in January 2023 compared to 6,12,42,531 in December 2022.
· SIP AUM stood at Rs 6,73,774.80 crore in January, while the number of new SIPs registered was 22,65,205 in the same month.
· In addition, mutual fund houses launched a total of 18 schemes, of which 12 are open-ended schemes and six close-ended schemes, in various categories, mobilising Rs 4,422 crore.
· On the other hand, Gold ETFs stood at Rs 21,835.92 crore in January 2023.