The number of systematic investment plan (SIP) accounts stood at an all-time high of 5.54 crore as of June 30, 2022, the Association of Mutual Funds in India (Amfi) has revealed in its monthly industry data.
That said, the monthly contribution to SIPs fell negligibly to Rs 12,275.79 crore as on June 30, 2022 from Rs 12,286.42 crore as of May 31, 2022. The SIP assets under management (AUM) at the end of June 2022 stood at Rs 5.51 lakh crore, while new SIPs registered during June 2022 stood at 17.92 lakh.
According to the report, the net AUM for the mutual fund industry stood at Rs 35.64 lakh crore as of June 30, 2022, a 6 per cent growth year-on-year (y-o-y), while average AUMs grew 8 per cent on a yearly basis to Rs 36.98 lakh crore.
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The number of mutual fund folios rose by a massive 31 per cent on a yearly basis to an all-time high of 13.46 crore as of June 30, 2022, compared to 10.25 crore as of June 30, 2021. On a monthly basis, it grew by 1 per cent from 13.33 crore as on May 31, 2022.
In the equity or growth category, flexi-cap, large-cap and large- and mid-cap funds emerged as top-three in terms of net flows.
In the hybrid category, dynamic asset allocation, balanced advantage fund, balanced hybrid and aggressive hybrid, and conservative hybrid witnessed positive flows, while in the fixed income or debt category, long duration fund and gilt fund with 10-year constant duration witnessed positive flows.
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Solution-oriented schemes, such as retirement and children’s savings funds, index, fund of funds (FoF) and exchange-traded funds (ETFs) also witnessed positive flows.
According to the report, the net AUMs under retail equity schemes (equity + hybrid + solutions oriented) rose by 16 per cent y-o-y to Rs 17.91 lakh crore as on June 30, 2022, while the average AUMs under retail equity schemes grew 18 per cent y-o-y to Rs 18.13 lakh crore as on June 30, 2022.
The Amfi report further mentioned that the number of retail folios stood at an all-time high at 10.72 crore as on June 30, 2022, a rise of 26 per cent y-o-y, with the industry adding 2.22 crore folios in the last 12 months.
NS Venkatesh, chief executive, AMFI said: “Strong momentum towards big megatrend of financialisation of savings being observed across the country continues to remain intact, even on the backdrop of subdued macro-economic situation, both domestically and globally. Rising interest rates, weakening rupee, mixed start to monsoon in India, and rising retail inflation in India and globally, too has not deterred small savers from continuing to patronise SIP mode of savings. SIP accounts at 5.54 crore as on June 2022, at an all-time high, and monthly SIP contribution powerfully holding at Rs. 12,276 crore is an indicator of continued confidence in mutual fund asset class.”
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He added that all retail equity schemes, including equity or growth, hybrid, solution-oriented, among others, except for arbitrage fund in the hybrid schemes category have witnessed positive net flows during June 2022, despite acute market volatility.
As for the negative flows in debt schemes, that could be because corporates usually redeem their debt investments now for advance tax payments, he said, adding that “hopefully July and August 2022 would see a different picture on debt schemes flows.”
