According to "Kaun banega crorepati," you must amass 10 crore in monthly SIPs by the time you are 60 years old

 According to "Kaun banega crorepati," you must amass 10 crore in monthly SIPs by the time you are 60 years old

Investments in long-term mutual funds have the potential to provide returns that surpass inflation.

In NEW DELHI: In September, systematic investment plans (SIPs) into mutual funds reached a record high, surpassing the $16,000 billion threshold for the first time, although inflows into small and midcap funds slowed due to certain firms' astronomically high valuations. According to mutual fund trade group AMFI, net inflows into equity mutual funds decreased by 30%, while outflows from debt funds reached an 18-month high of $1.01 trillion on Wednesday.

SIPs increased from 15,814 crore a month earlier to 16,042 crore in September. Net equity fund inflows decreased 30.39% to 14,091.26 crore. Net inflows into midcap funds fell by 20% to 2,001 crore, while small-cap funds saw a 37% decrease to 2,678.47 crore. Debt equity fund outflows jumped to $1.01 trillion from $25,873 crore the month before.

According to Melvyn Santarita, analyst - Manager Research, Morningstar Investment Adviser India, the decline in net inflows into mid- and small-cap funds may be ascribed to some profit-taking on the part of investors as well as worries over inflated values in certain of these categories.

Heavy withdrawals were made from debt funds, although experts believe this was anticipated. Debt mutual fund outflows often occur around the half-year close because banks must put aside money for their investments.

Since the yield to maturity of liquid and money market funds is 25 to 50 basis points greater than lending in overnight markets, the majority of banks have money parked in these investments. Corporates often withdraw their money because of salaries and other semi-annual obligations, according to Murthy Nagarajan, head of fixed income at Tata Asset Management.

Sectoral and thematic funds witnessed the greatest inflows across equities categories during the month, totaling $3,146 crore.There were four new funds launched in this category during the month of September, and their combined total receipts were 1,629 crore, which may have contributed to the increase in flows.

This category also had the greatest net inflows in August ($4,805 crore), helped along by the introduction of five new funds, said Santarita.

2,678 crore were net inflows into small cap funds. There were net inflows of 2,001 crore for mid-cap funds.

The asset under management (AUM) for the mutual fund sector was 46.57 trillion rupees as of September 30th, according to AMFI statistics.