The assets under management (AUM) of systematic investment planning (SIP) accounts of mutual funds crossed a record ₹5 lakh crore in July 2021 following sustained inflows and buoyancy in the capital market, data from AMFI showed. With a record inflow of ₹9,608 crore in the month, the total SIP inflow reached ₹1 lakh crore in the past 12 months.
The average portfolio value of SIP investors was ₹1.2 lakh in July, the highest since data was made available by AMFI in 2016.
The SIP AUM has grown by 32% annually in the past five years compared with a 17% gain in the total industry AUM. Driven by the equity-backed schemes, the total AUM breached the mark of ₹35 lakh crore for the first time. The retail AUM hit a record ₹16.3 lakh crore, constituting 46% of the total AUM.
The share of pure equity schemes in the total AUM rose by 600 basis points from a year ago to 33% in July 2021. The SIP AUM has outperformed the pure equity fund AUM by a wide margin of 46% in the past 12 months due to robust inflows. According to industry sources, around 90% of the SIP AUM is linked to equity funds.
In July, a record 23.8 lakh new SIP accounts were opened compared with the long term average of 9.7 lakh monthly additions. As a result, the SIP stoppage ratio dropped to 0.36 against the two-year average of 0.59. The SIP inflow in the first seven months of 2021 was ₹60,911 crore, exceeding the total inflow of ₹47,451 crore by foreign portfolio investors.