Gold and multi-asset funds shine: SIP inflows remain strong in September, says Anand Vardarajan
Despite muted returns from the Nifty over the past year, Systematic Investment Plan (SIP) inflows have remained strong, reflecting growing maturity among retail investors, Anand Vardarajan of Tata Asset Management told ET.The SIP contribution in September saw held steady at around Rs 30,000 crore, slightly lower than August’s Rs 33,000 crore, which Vardarajan attributes to a busy IPO calendar. “It has been great amount of maturity displayed by retail investors to kind of stay invested and stay the course. So that way SIP numbers are very heartening,” he said according to an ET report. Gold ETFs were the biggest gainers, with inflows jumping nearly fourfold to Rs 8,300 crore from Rs 2,000 crore in August, highlighting renewed interest in the precious metal. Multi-asset funds, which spread investments across equities, debt, and gold, also attracted roughly Rs 5,000 crore, signalling investors’ preference for a mix of growth and safety amid market uncertainties. Smallcap funds saw inflows moderate to Rs 4,300 crore in September, down from Rs 5,000 crore, while year-to-date inflows for smallcaps stand at Rs 27,000 crore compared with Rs 37,500 crore for flexicap funds. “So, what was numero uno category last year in terms of inflows ceases to be that way and flexicap which is really a combination of mid, large, and small, investors have decisively started moving more allocations there,” Vardarajan noted, as cited by ET. Midcap funds recorded inflows of about Rs 5,000 crore, second only to flexicaps. However, Vardarajan warned that midcap valuations appear high compared with small and largecaps.Despite this, investor interest remains steady, with year-to-date flows for midcaps and smallcaps almost equal. He added that it remains to be seen whether midcap momentum can continue, as investors increasingly favour diversified options like flexicaps.