Indian Mutual Fund Industry Sees Unprecedented Growth in SIP Flows

The Indian mutual fund industry has achieved remarkable growth, with Systematic Investment Plan (SIP) flows increasing by 39% in November. Assets under management exceeded Rs 68 lakh crore, indicating a significant shift in investors' preferences towards systematic investments, according to a report by Motilal Oswal.

The Indian mutual fund industry has marked impressive milestones, as observed in a recent report by Motilal Oswal. Systematic Investment Plan (SIP) flows witnessed a 39% surge in November, compared to the same timeframe last year. The industry's assets under management (AUM) have surpassed Rs 68 lakh crore, emphasizing the growing appeal of SIPs among retail investors.

The industry has seen a robust 48% growth over the past year in total AUM. Notably, SIP flows have exceeded non-SIP monthly gross flows, growing at 48% against a 12% rise in non-SIP flows during the same period. Despite a decline in non-SIP flows in November, SIP contributions constituted around 2% of the total inflows into mutual funds.

Since March 2021, the mutual fund AUM has grown at a compound annual growth rate (CAGR) of 23%. Equity mutual funds have played a crucial role, showing a 50% increase, totaling Rs 30 lakh crore. Decreased redemptions and increasing folios, especially in mid-cap funds, highlight sustained investor interest and a trend towards disciplined investment strategies.