SIP AUM hits a record high in July amid sustained inflow

The assets under management (AUM) of SIP (systematic investment plan) linked funds hit a record high of Rs 8.3 lakh crore in July 2023, the data from AMFI showed, driven by unfettered monthly inflows and duly supported by record high account additions. Consequently, the average portfolio value of the SIP investors was also at a record Rs 1,22,299 per SIP account. The average value of the SIP portfolio expanded for a fifth month in a row.

The share of SIP AUM in the total mutual fund AUM reached a record high of 18% in July. It means nearly one-fifth of the total mutual fund (MF) AUM is backed by the SIP linked funds. The contribution of SIP linked funds to the total MF AUM has doubled in the past five years as the growth in the SIP AUM outperformed the overall MF growth by a wide margin.

The SIP AUM grew by 30% annually in the past five years while overall MF AUM expanded by 15%. A large portion of the SIP AUM expansion can be attributed to monthly SIP inflow that reached to Rs 15,245 crore in July taking the 12-month cumulative inflow to Rs 1.7 lakh crore. In addition, the account opening trend continues to remain robust with a record 33.1 lakh new accounts in July taking the total SIP account tally to 6.8 crore. Nearly 90% of the monthly SIP inflows are deployed in equity focused funds.