SIP inflows hit all-time high of `26,632 crore

PTI New Delhi

Inflow in equity mutual funds dipped 3.24 per cent to Rs 24,269 crore in April as concerns over potential US tariffs and a shift in investor preference toward debt and hybrid strategies weighed on sentiment.

This was the fourth consecutive month of decline in inflow in equity funds amid continued market volatility against the backdrop of escalating tensions between India and Pakistan following the Pahalgam terrorist attack. Also, the latest fund infusion by investors marks the 50th consecutive month of net inflows into the segment.

Despite the decline, Systematic Investment Plan (SIP) contributions remained robust, registering a record Rs 26,632 crore in inflows in April, higher than Rs 25,926 crore in the preceding month, data released by Association of Mutual Funds in India (Amfi) on Friday showed.

"The steady increase in SIP contribution was driven by a steady increase in the number of contributing accounts, which now total 8.38 crore. This continued growth reflects the rising preference among investors for mutual funds as a disciplined and effective tool for long-term savings," Venkat Chalasani, Chief Executive at Amfi said.

Apart from equity, debt funds registered an inflow of Rs 2.19 lakh crore in the month under review after seeing a withdrawal of Rs 2.02 lakh crore in March. Overall, the mutual fund industry experienced an infusion of Rs 2.77 lakh crore in April after the typical quarter-end outflows of Rs 1.64 lakh crore in the preceding month.

The inflow has lifted the industry's assets under management to a record Rs 70 lakh crore as of April from Rs 65.74 lakh crore at March-end. According to the data, equity-oriented mutual funds saw an inflow of Rs 24,269 crore in April, lower than Rs 25,082 crore in March. In February, such funds witnessed an inflow of Rs 29,303 crore, Rs  39,688 crore in January and Rs 41,156 crore in December.