Mutual Fund SIP Inflows Reach New High Above ₹25,000 Crore

In a landmark achievement for India's mutual fund industry, the monthly SIP inflow has crossed the ₹25,000 crore mark for the first time. Data released by the Association of Mutual Funds in India (AMFI) shows that the total SIP contribution in October 2024 stood at ₹25,323 crore, a significant rise from ₹24,509 crore recorded in September 2024. 

This achievement marks a strong upward trajectory for SIP inflows, especially considering that monthly SIP contributions were recorded at just ₹16,928 crore in October 2023.

The rise in SIP inflows highlights the growing confidence of retail investors in mutual funds, despite the recent volatility in equity markets. October witnessed a weak performance from major equity indices like the Sensex and Nifty, which fell by 5.77% and 6.22%, respectively. However, investors have shown a continued preference for disciplined investing through SIPs, which has proven to be a resilient strategy during market fluctuations.

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Equity mutual funds saw a significant rise in inflows across all categories. All 11 equity fund categories recorded positive inflows in October. Sectoral and thematic funds led the way, with ₹12,278 crore. Flexi-cap funds also experienced higher investments, with ₹5,180 crore coming in, up from ₹3,214 crore in September.

In a positive turn, focused funds and Equity Linked Savings Schemes (ELSS), which had seen outflows for the last six months, saw inflows in October. Focused funds received ₹693 crore, while ELSS funds gained ₹383 crore.

In the debt mutual fund category, except medium duration and credit risk funds, most segments saw positive inflows. Liquid funds stood out with a record inflow of ₹83,863 crore, followed by overnight funds, which attracted ₹25,783 crore. Hybrid mutual funds saw a significant surge in inflows, rising by 244% to ₹16,863 crore in October, up from ₹4,901 crore in September.

Total assets under management (AUM) of mutual funds hit a new high of ₹66.98 lakh crore in October, a slight increase from ₹66.82 lakh crore in September. 

Inflows into New Fund Offers (NFOs) saw a sharp decline, falling to ₹6,078 crore from ₹14,575 crore in September.

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Venkat Chalasani, Chief Executive of AMFI, said, “The continued surge in SIP accounts, now exceeding 10.12 crore along with a record monthly SIP contribution of ₹25,322.74 crore, demonstrates the growing preference for disciplined investing among Indian investors. These milestones reinforce our commitment to making mutual funds the cornerstone of wealth creation for every Indian investor, as we continue to build a more financially inclusive nation.”

To Summarize

SIP investments have grown steadily since 2016, with monthly contributions reaching ₹3,122 crore in April 2016, surpassing ₹10,000 crore by September 2021, and crossing ₹20,000 crore in April 2024. The latest surge in October highlights a continued shift in investor behavior, favoring structured, long-term investment strategies. With equity and hybrid funds leading the way, the mutual fund sector continues to see rising investor participation, solidifying its role in wealth creation for Indian investors.