Mutual fund SIP inflow in July surges 10% to hit all-time high at ₹23,331 cr

SIP contribution surged 9.7% to an all-time high of ₹23,331.75 crore in July 2024 against ₹21,262.22 crore in June 2024, according to the latest AMFI (Association of Mutual Funds in India) data. The growth in SIP contribution comes amid a record rise in SIP accounts. As of July 31, 2024, the number of SIP accounts stood at "highest ever" at 9.3 crore compared to 8.9 crore in June 2024.

With SIP participation increasing in almost double digits, the total SIP assets under management in the mutual fund industry also stand "highest ever" at ₹13.09 lakh crore as of July 31, 2024, up from ₹12.4 lakh crore in the previous month.

"SIP contributions reaching an all-time high of ₹23,331.75 crores in July 2024 reflects the growing financial discipline among retail investors, helping them build wealth systematically over time. As we continue to navigate an ever-evolving market landscape, the industry's focus remains on empowering investors and fostering long-term financial well-being,” says Venkat Chalasani, chief executive, AMFI.

Chalasani says the mutual fund industry has shown positive growth with retail investors "consistently" embracing mutual funds as a "reliable" investment avenue. "Mutual funds have become an integral part of retail investors' financial strategies," he adds.

The mutual fund industry’s net AUM stands at ₹64.9 lakh as of July 2024. AUM for June 2024 was ₹61.1 lakh crore. The AAUM was ₹64.7 crore vs ₹61.3 lakh crore in the previous month.

The industry’s AUM spurted by nearly ₹14 lakh crore to a record ₹53.40 lakh crore in FY24 compared with ₹39.42 lakh crore as of the year ending March 2023.

The mutual fund folios stood at ₹19.8 crore in July 2024, of which retail MF folios comprising equity, hybrid and solution-oriented schemes were ₹15.8 lakh crore for July vs ₹15.3 lakh crore for June 2024. The retail AUM including equity, hybrid and solution-oriented schemes grew to ₹38.3 lakh crore from ₹37.7 lakh crore in June 2024.

In the said month, 15 schemes were launched, all in the open-ended scheme, raising ₹16,565 crore, the data shows.

On the Budget 2024, the Association has called for the continuation of "grandfathering for investments" in the respective categories of funds as done in the past.

Exchange-traded funds or ETFs, meanwhile, now constitute close to 13% or ₹6.95 lakh crore of the total mutual fund industry's AUM, indicating a shift towards ETFs as a preferred mode of investment, a recent study by Zerodha Fund House shows.

ETF volumes have also grown from ₹26,139 crore in FY2016-17 to ₹1,83,676 crore in FY2023-24, up over 600%, the data shows. The trend can be attributed to the democratisation of investment opportunities and benefits ETFs offer, such as lower costs, diversification, and ease of trading.