Mutual Fund SIP Inflows Hit Record High of ₹26,688 Crore in May 2024 A Sign of India's Growing Retail Investor Confidence

 

MWM Financial Bureau | June 10, 2024

In a testament to the resilience of India's retail investment culture, monthly inflows through Systematic Investment Plans (SIPs) surged to an all-time high of ₹26,688 crore in May 2024, up 0.21% from April’s ₹26,632 crore, according to data released by the Association of Mutual Funds in India (AMFI). This marks the seventh consecutive month of record-breaking SIP inflows, underscoring investors' unwavering faith in long-term equity markets despite recent volatility.

Mutual fund SIP inflows reached a historic high of ₹26,688 crore in May 2024, pushing SIP Assets Under Management (AUM) to ₹14.61 lakh crore – a 5.1% monthly increase that now represents 20.24% of India's total MF AUM. This growth was fueled by a surge in SIP accounts to 8.56 crore (adding ~18 lakh new accounts monthly), demonstrating robust retail investor discipline through automated small-ticket investments (₹500–5,000/month). Despite a 16% MoM dip in overall equity inflows to ₹18,838 crore amid market uncertainty, SIPs remained resilient due to India's strong macroeconomic fundamentals (7.8% Q4 GDP growth), SEBI's regulatory push including tax benefits, and rising preference for passive options like index funds (₹9,842 crore inflow). While small-cap funds held steady despite SEBI restrictions, experts caution about Nifty 50 valuations (P/E ~22x) and global rate risks. Industry leaders like Morningstar's Himanshu Srivastava emphasize SIPs reflect "structural trust in India’s growth story," with Union AMC's G Pradeepkumar noting they "cushion market impacts." Investors are advised to maintain SIP discipline, diversify across market caps, and periodically rebalance portfolios.

 

With SIP contributions projected to cross ₹30,000 crore/month by 2025, India’s mutual fund industry is poised for exponential growth. As retail investors increasingly replace traditional savings (FDs, gold) with SIPs, the landscape of Indian finance is undergoing a silent revolution.

*"For new investors, start a SIP in a flexi-cap fund with a 7–10-year horizon. For veterans, consider STPs (Systematic Transfer Plans) to capitalize on debt-equity shifts."*

(Data Source: AMFI, SEBI, Morningstar | MWM Analysis)