Despite The Market Volatility SIP Continues To Remain Steady: AMFI

According to a data released by the Association of Mutual Funds in India (AMFI) on September 9, 2019, the income and debt-oriented schemes witnessed a massive inflow in the month of August.The net inflows from such schemes stood at Rs. 91,126.76 crore during August 2019 as compared to the net inflows of Rs. 61,845.54 crores, witnessed in July 2019, up by 47 per cent.  Whereas the growth and equity-oriented schemes saw a net inflow of Rs. 9,152.43 crore in August as compared to Rs. 8,112.52 crore in July, 2019, witnessing an increase of 13 per cent. 

Commenting on the occasion, N S Venkatesh, Chief Executive, AMFI said: “Retail Investor Interest in Equity Mutual Funds, for the 4th time in succession, continues to be steady, displaying maturity, despite uncertain economic and volatile market situation. Net inflows, largely in all categories of Equity funds, especially in small and mid-cap funds, as also in equity linked saving schemes (ELSS) segment, signifies heightened confidence and interest in emerging businesses and disciplined tax planning.” 

The average assets under management of the overall mutual fund industry for the month of August has gone down marginally by 1 per cent at Rs. 25,63,934.80 crore from Rs. 25,81,025.77 crore, in July 2019. Total amount collected through systematic investment plans (SIPs) during August 2019 stood at Rs. 8,230.76 crore from Rs. 8,324.28 crore in July 2019, a marginal decrease of 1 per cent from last month. “SIP numbers are stable except a marginal fall. Despite the market volatility SIP continues to remain steady. The investors are continuing to invest under the SIP for goals they have set for themselves. When it comes to SIP, I believe that upward trend is not broken and will resume from next month onwards,” explained Venkatesh.

As on August 2019, the SIP AUM stood at Rs. 2,71,104.77 crore whereas SIP accounts as on 31st August, 2019 where 2.81 crore as compared to 2.78 crore accounts in July. When it comes to mutual fund industry outlook for the month of September Venkatesh believes that SIP numbers would be robust. Although he sees a little volatility in liquid funds category owing to quarter-end phenomenon, any other funds should see positive trends. Also, Equity funds would attract lot of inflows in September as for investors major market corrections would be over.