Startling Truth: Why Net SIP Inflows Can’t Be Compared with Gross Figures, Reveals AMFI | Markets News
The Association of Mutual Funds in India (Amfi) clarified on Friday that net systematic investment plan (SIP) inflow data cannot be directly compared with gross SIP inflow figures. Gross SIP inflows represent the total investments made by SIP investors within a month, while net SIP inflows account for redemptions from SIP accounts over the same period.
In a media call, Amfi Chief Executive Venkat Chalasani explained that redemptions include units accumulated over months or even years, making net SIP inflows less straightforward than gross inflows, which reflect only the current month’s investments. This clarification comes amid reports highlighting stagnant net inflows despite rising gross SIP inflows.
For instance, in July, the gross SIP inflow was Rs 23,332 crore, yet the net SIP inflow was Rs 8,964 crore due to redemptions. On a larger scale, equity mutual fund schemes amassed Rs 81,158 crore in July in gross terms, with net inflows settling at Rs 37,113 crore after Rs 44,045 crore in redemptions.
Original Story https://www.business-standard.com/markets/news/net-sip-inflow-data-is-not-comparable-with-gross-figures-says-amfi-124082300774_1.html
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