SIP Inflows Hold Steady at ₹26,400 Crore in January Amid Market Volatility
The volatility of markets failed to prevent retail investors from making mutual fund investments through January. The Association of Mutual Funds in India (AMFI) data shows Systematic Investment Plan (SIP) monthly gross inflows amounted to Rs 26,000 crore throughout January. Markets were uncertain during that time as SIP account totals showed a slight decrease.
SIP Inflows Steady Amid Market Volatility
The month of January maintained consistent SIP inflows at Rs 26,400 crore yet this figure mirrored a reduction from the December total of Rs 26,459 crore. The stock market variations during this period did not affect the steady investment trends observed in January. Total SIP Assets Under Management (AUM) maintained Rs 13.6 lakh crore in December and finished at Rs 13.2 lakh crore in January. The reported figures changed due to regulatory-authority-ordered reconciliations which caused occasional adjustments in recorded numbers.
Mutual Funds SIP Trends – Jan 2025 📉📈
•New SIPs: 56.19 lakh
•SIPs discontinued: 61.33 lakh (highest in recent months)
•Net SIPs: -5.14 lakh (more exits than new registrations)
•SIP Contribution: ₹26,400 Cr (holding strong)Despite robust inflows, rising cancellations may… pic.twitter.com/r3ZOjJtu5R
— Nigel D’Souza (@Nigel__DSouza) February 12, 2025
Shift Towards Hybrid Funds
Investor reception toward hybrid funds increased sharply during this period as thematic funds received reduced net inflows from investors. Hybrid funds received a substantial amount of net inflow worth Rs 8,768 crore during January which was higher than their December performance of Rs 4,370 crore.
The overall net inflows for thematic funds decreased to Rs 9,017 crore during January while December numbers stood at Rs 15,332 crore. The unpredictable market conditions have led experts to believe investors now focus on asset allocation approaches that include balanced advantage funds and multi-asset funds. The injection of funds into these funds has increased due to their stability qualities although seeking risk reduction remains a driving reason for investors.
Impact of Market Conditions on AUM
Mutual fund AUM recorded an increase to reach Rs 67.3 lakh crore in January as SIP accounts and assets under management both reported decreases. The funds raised through Systematic Investment Plans rose very slightly from Rs 66.9 lakh crore to Rs 67.3 lakh crore between December and January. Sources from the industry observed that AUM growth stemmed principally from net inflow activity while January stock market declines heavily impacted the total expansion. Market conditions trigger industry adaptation which leads investors to choose more stable investment options.
