Page 19 - Banking Finance February 2023

MUTUAL FUND

Nistasha Shankar- Head PRS Equity search at Morningstar Investment Ad- in the ever-increasing awareness and
Research, Yes Securities, said. viser India, said. adoption of SIPs as a goal-linked route
to create wealth over the long term.
"As newer investors come to the fore,
SEBI suggests trade settle- the SIP numbers will continue to in- "This month, almost 24 lakh new SIPs
were registered, which shows increas-
crease. While SIP numbers will remain
ment system that by-
ing investor belief in the instrument,"
strong, lump sum flows will be depen-
passes broker Venkatesh said.
dent on market levels and volatility, we
The Securities and Exchange Board of have seen investors book profits when The MF industry's total assets under
India (Sebi) is considering an ambitious markets run up and re-allocate to eq- management (AUM), however, showed
plan to alter the payment mechanism uities when markets are lower," he a marginal drop to Rs 39. 9 lakh crore
in stock market trades. The markets
added. from Rs 40. 4 lakh crore in November.
regulator is discussing with market in-
Priti Rathi Gupta, Founder and MD at Among the various fund categories,
frastructure intermediaries the possi-
LXME, said the trend of investing debt schemes witnessed a Rs 21,947-
bility of implementing a system that
through SIP will gain even more mo- crore net outflow, while equities saw
will result in money effectively leaving
mentum in this year in order to enable a net inflow of Rs 7,303 crore. Hybrid
an investor's bank account only after
the financial inclusion of investments schemes saw a net inflow of Rs 2,255
a trade is completed, said three people
by people beyond traditional instru- crore, while ETFs recorded the biggest
familiar with the development. This
ments which will further contribute net inflow for the month, at Rs 15,398
would mean funds from an investor's
towards the increase in the assets un- crore, according to the Amfi data.
bank account would not go to the bro-
der management (AUM).
ker but directly flow to settle the
Equity mutual fund to
trade.
SIP flows in December top shift to T+2 settlement
Mutual funds' SIP collec- Rs. 13k crore for 3rd cycle from Feb 1
tion jumps 31% to Rs. 1.5 month in row Asset management companies (AMCs)
will move to a shorter redemption pay-
lakh crore in 2022 Monthly flows into mutual fund
ment cycle of T+2 for equity schemes
Contributions to mutual fund schemes schemes through systematic invest-
from February 1. At present, funds are
through systematic investment plans ment plans (SIPs) inched up to Rs
transferred to the investor's bank ac-
or SIPs remain unfazed from the mar- 13,573 crore in December, an all-time
count within 3 days after the comple-
ket volatility in 2022 with inflow grow- high, as investors continued to use this
tion of the redemption process.
ing to Rs 1.5 lakh crore in 2022, a route to save for the long term. This
surge of 31 per cent from a year ear- was the third consecutive month that The move is in line with the T+1 settle-
lier, due to higher retail participation. SIP flows remained above the Rs 13k ment cycle of equity markets to ben-
croremark, according to data released efit mutual fund investors.
In comparison, an inflow of Rs 1.14 lakh
by the industry trade body Amfi.
crore through the route was regis- Indian equity markets moved to a T+1
tered in 2021 and Rs 97,000 crore in The December data indicated that, settlement cycle for all stocks, short-
2020, data with the Association of over the last one year, monthly SIP ening the settlement cycle by a day
Mutual Funds in India (AMFI) showed. flows have jumped 20% - or Rs 2,268 and making the availability of funds a
crore - while the number of SIPs have day sooner than at present.
Going ahead, SIP numbers are ex-
surged by 25% to 6. 1 crore.
pected to continue to remain strong in To pass on this benefit to mutual fund
2023 as investors are increasingly ap- According to Amfi chief executive N S investors, it has been decided all AMCs
preciating the importance of regular Venkatesh, the importance of investing will move to the T+2 redemption pay-
investing through the route, Kaustubh in equity markets for longer term goals ment cycle for equity schemes, and
Belapurkar, Director - Manager Re- is not lost on investors. This is reflected implement this uniformly with effect

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