SIP Inflows Increase To ₹32,087 Crore In March; AUM Drops Due To MTM Losses

Systematic Investment Plans (SIPs) witnessed an increase in inflow to ₹32,087 crore in March, from ₹29,845 crore in February, as per data from the Association of Mutual Funds in India (AMFI).

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The growth came after a fall in February's funds, partly caused by the reduced number of trading days and the occurrence of a non-banking Saturday on the last day of the month. AMFI estimates this spillover at around ₹1,000 crore.

SIP Accounts And Stoppage Ratio

The number of contributing SIP accounts rose to 9.72 crore in March from 9.44 crore in February, indicating growth in the investor base.

In the course of the month, 52.82 lakh new SIPs were opened. Simultaneously, 53.38 lakh SIPs were either discontinued or reached maturity. Based on this, the SIP stoppage ratio stood at about 101%, meaning discontinuations slightly exceeded new registrations.

AMFI Chief Executive Venkat Chalasani stated that market volatility may have led some investors to pause or discontinue SIPs temporarily. Fluctuations in registrations and closures are seen to occur at regular intervals, while the number of active SIP accounts is an important criterion.

March Market Performance

There has been an increase in the SIP flows when the markets were underperforming. There have been declines in benchmark indices in the month of March, where the Sensex fell 11.5%, and the Nifty fell 11.3%.

Broader markets also weakened, with the BSE Midcap 150 index down 10.8% and the BSE SmallCap 250 index declining 10.33% during the same period.

SIP AUM Declines

In spite of better flows, the total SIP assets under management registered a decline on account of mark-to-market losses. The SIP AUM dropped to ₹15.11 lakh crore in March from ₹16.64 lakh crore in February.

The SIP assets constituted around 20.5% of the total mutual fund industry AUM for the month. The data indicates that while market movements impacted asset values and led to higher stoppages, inflows and account growth continued during March.