July torrent takes total SIP assets past Rs 5-trillion mark

Assets under management (AUM) of systematic investment planning accounts (SIP) of Investment funds crossed a record 5 lakh crore rupees in July 2021 after a sustained tickets and dynamism of the capital market, data from AMFI presented. With a record inflow of ₹ 9,608 crore for the month, the total inflow of SIP reached ₹ 1 lakh crore in the last 12 months.

The average portfolio value of SIP investors was ₹ 1.2 lakh in July, the highest since AMFI made the data available in 2016.

SIP AUM has grown 32% annually over the past five years compared to a 17% increase in total industry AUM. Fueled by equity-backed schemes, the total AUM surpassed the ₹ 35 lakh crore mark for the first time. Retail AUM reached a record 16.3 million lakh rupees, which constitutes 46% of total AUM.

The share of pure capital schemes in total assets under management increased 600 basis points from the previous year to 33% in July 2021. The SIP AUM has outperformed the pure capital fund AUM by a wide margin of 46% in the last 12 months due to robust entries. According to industry sources, around 90% of the SIP AUM is tied to equity funds.

In July, a record 23.8 lakhs new SIP accounts were opened compared to the long-term average of 9.7 lakh of monthly additions. As a result, the SIP unemployment rate fell to 0.36 against the two-year average of 0.59. SIP inflow in the first seven months of 2021 was ₹ 60,911 crore, beating the total inflow of ₹ 47,451 crore from foreign portfolio investors.