InvestorQ : If the SIP flows for the month of May are still above Rs.8100 crore, how is the SIP AUM not rising in tandem?
Dilmini Mercia made post

If the SIP flows for the month of May are still above Rs.8100 crore, how is the SIP AUM not rising in tandem?

Answer
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Dhwani Mehta answered.
3 months ago


What you saying does look like anomaly but there could a fairly simple explanation to it. Ffor example, if you look at the May 2020 data put out by AMFI, the SIP flows are robust at Rs.8123 crore. While this is below the average of last few months, it is still a very good number. At the same time if you look at the SIP AUM, the overall assets under SIP management are almost flat at Rs.276,000 crore. What mutual fund distributors opine is that this discrepancy could be attributed to the bounced SIPs. This is how it works. When SIPs bounce due to insufficient funds, this is not reflected in reduced SIP flows as a result of which the SIP flows may be a tad misleading. If the bounced SIPs due to insufficient funds are considered, the SIP flows may be actually lower, especially during the COVID-19 period.