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SIP investments: June mutual fund data shows a fall in equity inflows despite an increased

SIP investments

SIP investments: In June 2021, money continued to pour into mutual funds but at a reduced pace.

SIP investments: The mutual fund industry’s total assets under management increased to Rs 33.66 lakh crore on June 30 of Rs 33.05 lakh crore on May 31. Investors were drawn to equities funds by rising stock markets and positive sentiment, as well as a broad-based rally that lifted the values of mid-and small-cap stocks.

In June 2021, SIP investments the number of systematic investment plans (SIPs) in various mutual fund schemes increased to 4.02 crores, up from 3.88 crores in May 2021. SIP’s contribution increased from Rs 8818 crore in May to Rs 9,155 crore in June 2021. For many individual investors, SIPs are the preferred method of investment. Rising stock markets and dropping interest rates have enticed a slew of new investors to mutual funds in quest of significant returns.

“The Mutual Fund sector is witnessing a dramatic surge in the number of new investors, which has doubled in the previous four years to 2.39 crores unique investors,” says NS Venkatesh, AMFI’s Chief Executive. Many new investors are opting for mutual funds via the SIP method over other traditional investing options.” New SIP registrations are on the upswing, with a record 21.29 lakh new SIP registrations reported in June 2021. The fact that SIP AUM is at an all-time high, accounting for about 15% of total industry AUMs, and that the number of SIP accounts has surpassed four crores for the first time reflects ongoing retail investor trust in the mutual fund asset class, he says.

Even though SIP investments continued to pour money into mutual funds, overall inflows fell in June. In June 2021, equities funds received Rs 5,988 crore in inflows, down from Rs 10,082 crore in May. Mid-cap funds received the most significant inflows of Rs 1,729 crore (investments surpassing redemptions). Among outflows of Rs 791 crore and Rs 114 crore, equity-linked saving funds and value funds lost money.

In June 2021, bond funds had net inflows of Rs 3,566 crore, compared to outflows of Rs 44,512 crore in May. Clear currents of Rs 13,987 crore and Rs 2,439 crore were recorded in the money market and ultra-short-term funds, respectively. This is consistent with the expectation that corporate investors will withdraw funds to make advance tax payments and meet quarter-end cashflow obligations.Net inflows of Rs 6,318 crore and Rs 6,273 crore were received floater fund and the low duration fund, respectively. In a rising interest rate environment, floating funds are considered an excellent way to invest.

In June, SIP investments gold funds had net inflows of Rs 359 crore, up from Rs 287 crore in May. In June, net inflows to funds of funds investing overseas were Rs 791 crore, compared to Rs 2,423 crore in previous months. Gold and schemes focusing on international shares continue to be popular among diversification-seeking investors. Gold’s low prices have drawn a large number of investors to gold ETFs.

This article was shared to Prittle Prattle News as a Press Release.

By Reporter.

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