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Mumbai – Systematic Investment Plans (SIPs) continued to demonstrate their resilience in August, with monthly inflows standing at ₹28,265 crore, only marginally lower than ₹28,464 crore in July, according to the latest data released by the Association of Mutual Funds in India (AMFI).
Industry observers said the numbers reflect the steadfast commitment of retail investors to systematic investing, even amid evolving market dynamics. SIPs have become the primary gateway for equity participation for millions of Indian households, offering disciplined investing and compounding benefits over the long term.
SIPs Remain Retail Investors’ First Choice
Despite the slight month-on-month dip of around ₹199 crore, experts noted that SIP flows remain remarkably strong, highlighting investors’ growing trust in mutual funds as a vehicle for long-term wealth creation.
Akhil Chaturvedi, Chief Business Officer and Executive Director at Motilal Oswal AMC, emphasized the consistency of SIP trends:
“SIP inflows have been witnessing consistent incremental growth over the years. We believe the industry could see an additional ₹1,000–1,500 crore per month in net flows as more retail investors adopt the systematic route to equity investing.”
This steady inflow has helped mutual funds absorb market volatility while ensuring a stable base of long-term capital.
Equity Mutual Funds Extend Winning Streak
Equity mutual funds reported net inflows of ₹33,417 crore in August, continuing their 54-month positive streak. The robust flows underline the continued retail appetite for equities, despite global uncertainties and domestic market swings.
On the valuation side, total assets under management (AUM) of the industry stood at ₹75.18 lakh crore in August, slightly lower than ₹75.35 lakh crore in July, primarily due to fluctuations in debt categories.
Category-Wise Flows: Large and Mid-Caps Gain
A closer look at the data reveals distinct trends across equity categories:
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Large-Cap Funds: Net inflows rose to ₹2,835 crore in August, compared to ₹2,125 crore in July, reflecting renewed investor confidence in established companies amid market consolidation.
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Mid-Cap Funds: Continued to attract strong inflows of ₹5,331 crore, marginally higher than ₹5,182 crore a month earlier. This indicates sustained enthusiasm for mid-cap growth stories.
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Small-Cap Funds: Witnessed a dip in flows, with inflows moderating to ₹4,993 crore from ₹6,484 crore in July. Analysts believe investors are becoming cautious about frothy valuations in this segment, even as long-term interest remains intact.
This rotation across categories reflects a more balanced investor approach, with diversified participation across large, mid, and small-cap segments.
Debt Schemes See Pressure
The debt mutual fund segment painted a contrasting picture, with several categories witnessing outflows in August:
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Liquid Funds: Reported outflows of ₹13,350 crore, compared to robust inflows of ₹39,355 crore in July, largely due to quarter-end redemptions and corporate treasury movements.
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Corporate Bond Funds: Recorded outflows of ₹825 crore, reversing the ₹1,421 crore inflows in July.
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Credit Risk Funds: Continued to see cautious investor sentiment, with outflows of ₹244 crore, marginally better than the ₹271 crore outflows in July.
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Dividend Yield Funds: Registered outflows of ₹175 crore, compared to inflows of ₹97 crore in July, reflecting a shift in investor preference towards growth-oriented categories.
Overall, the debt segment experienced subdued momentum, indicating investors’ preference for equities and multi-asset products amid fluctuating interest rate expectations.
SIPs as a Long-Term Wealth Creation Tool
Industry leaders reiterated that SIPs remain a cornerstone of India’s mutual fund industry, especially in channeling retail participation into equities. With steady monthly inflows above ₹28,000 crore, SIPs are not only helping investors build long-term wealth but are also strengthening the resilience of the overall mutual fund ecosystem.
AMFI officials highlighted that India’s mutual fund penetration continues to rise, aided by investor awareness campaigns, digital platforms, and the convenience of investing small sums systematically. The broad consensus in the industry is that SIPs could cross the ₹30,000 crore monthly mark within the next 12 months, given the current pace of participation.
Conclusion
The ₹28,265 crore SIP inflows in August underline the growing financial discipline among Indian investors and the rising acceptance of mutual funds as a mainstream savings avenue. While equity inflows remain buoyant across large and mid-caps, the moderation in small-cap flows and debt fund outflows reflect investor caution in select areas.
With SIPs continuing to act as the backbone of the industry, experts believe the mutual fund sector is well-positioned to attract consistent inflows, ensuring both depth and stability in India’s capital markets.
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