Indian investors continued to show strong confidence in mutual funds, contributing a record Rs 25,323 crore through Systematic Investment Plans (SIPs) in October, despite a volatile stock market. This achievement pushed the total SIP accounts, or folios, past the 10-crore mark, according to data from the Association of Mutual Funds in India (Amfi).
Historic High in Monthly SIP Contributions
October marked the first time SIP contributions exceeded Rs 25,000 crore in a single month. Equity funds experienced net inflows for the 44th consecutive month, even as a market decline saw the total assets in this category dip from Rs 31.1 lakh crore in September to Rs 29.9 lakh crore by October’s end. Debt funds, however, recorded a significant inflow of Rs 1.6 lakh crore, with Rs 83,863 crore directed specifically toward liquid funds.
SIP Popularity Fuels Mutual Fund Growth
Venkat Chalasani, CEO of Amfi, emphasized that the rise in SIP contributions and accounts showcases the growing preference for disciplined investing in India. “These milestones underscore the role of mutual funds in wealth creation for every Indian, supporting our vision for a financially inclusive nation,” he said.
Sectoral and Thematic Funds Lead Equity Inflows
Within equity funds, sectoral and thematic funds attracted the largest net inflows at Rs 6,862 crore, bringing total assets in this segment to nearly Rs 4.5 lakh crore. Following closely, small-cap funds brought in Rs 4,336 crore and mid-cap funds Rs 4,263 crore.
“The steady inflow highlights the resilience of Indian investors, who continue to invest in equities despite market fluctuations,” noted Akhil Chaturvedi, executive director and chief business officer at Motilal Oswal Mutual Fund.
Gold ETFs Gain Popularity Amid Global Uncertainty
Gold Exchange-Traded Funds (ETFs) saw a sharp increase in net inflows, rising to Rs 1,961 crore in October from Rs 1,233 crore in September. Himanshu Srivastava, associate director at Morningstar Investment Research India, explained, “With ongoing geopolitical tensions, inflation concerns, and interest rate uncertainties, gold remains a favored safe haven for investors.”
