Mutual fund SIP inflows rise to record Rs 32,297 crore in August; stoppage ratio moderates

The latest market report highlights that SIP flows rose marginally to Rs 32,297 crore in August, compared with Rs 31,961 crore in July, according to data released by the Association of Mutual Funds in India (AMFI). The August SIP contribution was the highest recorded so far, surpassing the previous high of Rs 32,087 crore recorded in March and Rs 31,781 crore.

The SIP stoppage ratio moderated to 81.1 percent in August from 81.8 percent in July, as the number of new SIP registrations continued to stay elevated than SIPs that were closed, matured or discontinued during the month. The stoppage ratio is calculated by dividing the number of SIPs that matured or were discontinued during the month by the number of new SIPs registered.

The industry registered 66.39 lakh new SIPs in August, while 53.82 lakh SIPs were closed, matured or discontinued. In July, 61.44 lakh new SIPs were registered, while 50.29 lakh SIPs were closed, matured or discontinued. The number of contributing SIP accounts rose to 10.02 crore in August, from 9.90 crore in July, crossing the 10-crore mark for the first time.

The total number of SIP accounts stood at 10.62 crore at the end of August.  SIP assets under management rose to Rs 18.62 lakh crore in August from Rs 18.20 lakh crore in July. SIP AUM accounted for 21.4 percent of the mutual fund industry's total AUM. Equity funds see firm flows

Overall, the mutual fund industry's assets under management rose 1.5 percent to Rs 87.08 lakh crore at the end of August, helped by positive net inflows and market-to-market upside. Equity mutual funds continued to see firm investor interest, with Rs 29,329 crore of inflows in August, compared with Rs 24,697 crore in July.

The industry further noted 26.54 lakh folios during August, taking the total folio count to 28.35 crore. Among equity categories, small-cap funds attracted Rs 7,973 crore, followed by mid-cap funds at Rs 6,989 crore and flexi-cap funds at Rs 5,059 crore. Large-cap funds continued to see outflows of Rs 1,147 crore during the month.

Passive funds saw inflows of Rs 10,948 crore in August. Equity ETFs attracted Rs 7,237 crore, while gold ETFs saw inflows of Rs 2,597 crore and silver ETFs received Rs 1,271 crore. Silver ETF assets rose to Rs 8,548.8 crore at the end of August, from Rs 7,676 crore in July. The industry rolled out six new fund offers during August, which together mobilised around Rs 3,051 crore.