SIP share in MF AUMs at record high in September | Economic Times

ET Intelligence Group: Though the inflow in systematic investment plan (SIP) schemes have moderated over the past six months, their share in the total assets under management (AUM) of the mutual fund (MF) industry increased to a record 12.5% in September, according to the data from the Association of Mutual Funds in India (AMFI).Over the past four years, the average share of SIP schemes in the total MF AUM was 9.8%. It increased by 172 basis points in the past six months even as the SIP monthly inflow dropped to Rs 7,788 crore in September from the peak of Rs 8,641 crore in March.The total MF AUM fell by 4% in September from the February peak while the SIP AUM grew by 3%. The contraction in the industry AUM was sharper in the past two months due to the outflow of around Rs 66,000 crore. The SIP inflow in the past six months was Rs 47,827 crore compared with Rs 49,361 crore in the corresponding period of the previous year.In the past four years, the number of SIP accounts grew by 31.1% annually to 3.3 crore while the total MF folios rose by 16.5% to 9.3 crore. In September 2020, the SIP discontinuance dropped to 7.3 lakh accounts, the lowest in five months, while 10.4 lakh new SIP accounts were registered. However, at 0.7, the ratio of discontinued SIPs and the new SIPs – the discontinuance ratio – in September 2020 was still higher than the long-term average of 0.5.The total AUM of the MF industry was Rs 26.9 lakh crore at the end of September 2020. Of this, open-ended debt and equity schemes contributed 45% and 29% respectively while the share of hybrid and passive funds was 11% and 9% in that order. The balance was attributed to closed ended schemes.