look news india
Ahmedabad: Despite a large number of accounts being closed, withdrawals from mutual fund's systematic investment plans (SIPs) were slightly higher than the average of the last six months. Last month, investors withdrew Rs. 11,678 crore, while the average of the last six months was Rs. 10,436 crore.
According to data from the Association of Mutual Funds in India (AMFI), after adjusting for these investment withdrawals, net SIP investments in May stood at Rs. 9,226 crore, which is 44 per cent of the total SIP investments of Rs 20,904 crore. Net SIP data shows that a large number of accounts were closed in May due to closure of inactive accounts.
An average of 19 lakh SIP accounts were closed in 2023-24, which increased to 33 lakh in April 2024 and 44 lakh in May. This follows directions from market regulator Sebi, which had asked to close SIP accounts if funds are not withdrawn for three consecutive times.
Overall, investors have invested Rs. 43,435 crore as compared to a net investment of Rs. 46,666 crore in May. Mutual funds have seen record investments in the equity market in the last three months due to increased investments through SIPs and lump sum investments and in May, mutual funds invested Rs 36,121 crore. Equities worth Rs 46,666 crore were bought.