Key facts
- The mutual fund SIP stoppage ratio declined to 95% in May.
- In May, 54.16 lakh new SIPs were registered, exceeding the 51.70 lakh discontinued or completed SIPs.
- This is an improvement from April (101.14%) and March (101.06%), where more SIPs were stopped than started.
- Equity inflows into mutual funds continued for the 63rd consecutive month, totaling Rs 22,907 crore in May.
- Total SIP inflows amounted to Rs 30,954 crore in May, supporting the industry's AUM of Rs 81.58 lakh crore.
The mutual fund industry's Systematic Investment Plan (SIP) stoppage ratio declined to 95% in May, a notable improvement from the preceding two months where it exceeded 100%. This indicates that more new SIPs were registered than those discontinued or completed their tenures. In May, 54.16 lakh new SIPs were registered, compared to 51.70 lakh discontinuations.
Despite ongoing global uncertainties and commodity price volatility, the industry's Assets Under Management (AUM) remained largely stable at Rs 81.58 lakh crore. Equity inflows continued their positive trend for the 63rd consecutive month, reaching Rs 22,907 crore in May. Robust SIP inflows, totaling Rs 30,954 crore, contributed significantly to this stability, with the number of contributing SIP accounts steady at 9.64 crore.
Experts suggest that while SIPs have seen continuous dips in the past two months, the sustained flows highlight investor maturity and the importance of long-term, disciplined investing. The retail MF AUM for Equity, Hybrid, and Solution Oriented Schemes stood at Rs 47,91,061 crore in May, with retail folios increasing to over 21.10 crore. Overall mutual fund folios reached approximately 27.66 crore by the end of May.