SIP inflows in March spike 7.5% to Rs 32,087 crore

The monthly Systematic Investment Plan (SIP) inflows in March rose to Rs 32,087 crore, up nearly 7.5 per cent from Rs 29,845 crore in February, according to the data released by the Association of Mutual Funds in India (AMFI).

The development comes amid continued retail participation despite volatile market conditions due to the Iran War.

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A slight decline in monthly SIP contributions was witnessed in February which was largely due to calendar-related factors as February has fewer days, and the last day of the month fell on a non-banking Saturday. AMFI estimates this spillover amount to be around Rs 1,000 crore.

Around 54 lakh new SIPs registered while about 53.38 lakh SIPs were discontinued or matured. The SIP stoppage ratio which is calculated as discontinued SIPs divided by new registrations stood at approximately 98.9 percent, implying that nearly all new SIPs were offset by closures or maturities.

If the ratio goes above 100 percent, it means more SIPs were stopped than started in that month.

However, the assets under management (AUM) of SIP declined due to market movements. SIP AUM fell from Rs 16.64 lakh crore in February to Rs 15.11 lakh crore in March, largely on account of negative mark-to-market impact during the period.

SIP assets now constitute about 20.5 percent of the overall mutual fund industry AUM.

The SIP AUM surge March came during a period of market weakness. In March, Sensex declined 11.5 per cent in March, while Nifty fell 11.3 per cent.

BSE Midcap 150 dropping 10.8 per cent and BSE SmallCap 250 declining 10.33 per cent.