Unprecedented SIP Inflows Highlight Retail Investor Optimism

Despite the volatility in the stock market, December witnessed a remarkable surge in equity mutual fund investments, with total inflows reaching Rs 41,156 crore. This month also marked a historic high in systematic investment plan (SIP) flows, nearly touching Rs 26,460 crore, as reported by the mutual fund industry trade body, Amfi.

Mid and Small-Cap Categories Lead the Charge

The mid and small-cap categories together attracted inflows of Rs 9,761 crore, setting a new monthly record since April 2019. Meanwhile, sectoral and thematic funds saw the highest net inflow within the category, at Rs 15,332 crore.

Shift in Investment Culture

Sanjay Bembalkar, head of equity at Union MF, attributes this momentum to the maturity of Indian investors and a shift in their investment behavior amidst market volatility and economic slowdown. "These numbers indicate structural change in investing culture, thought process maturity, and awareness among investors," Bembalkar noted.

AUM Sees a Slight Dip

Despite the strong inflows, the mutual fund industry's total assets under management (AUM) slightly declined to Rs 66.9 lakh crore from Rs 68.1 lakh crore in November, primarily due to significant outflows from several debt funds.