SIP inflows stay robust in September as gold and multi-asset funds shine: Anand Vardarajan

SIP inflows remained highly encouraging despite muted Nifty returns over the past year, reflecting growing retail investor maturity and discipline, says Anand Vardarajan of Tata Asset Management. September saw strong SIP momentum even as equity inflows slightly eased to around Rs 30,000 crore from Rs 33,000 crore in August — a reasonable figure considering the busy IPO calendar that month.

“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 in an interview with ET Now.

He noted that the standout performer was gold ETFs, which saw a nearly fourfold rise in inflows to about Rs 8,300 crore versus Rs 2,000 crore in August, highlighting renewed investor interest in the asset class.

Vardarajan added that multi-asset funds, which diversify across equities, debt, and precious metals, also attracted about Rs 5,000 crore in fresh investments. He said this shift toward diversified and tangible assets shows investors are balancing growth and safety amid ongoing market uncertainties.

He said smallcap fund inflows, though still strong, are showing signs of moderation. September saw inflows of around Rs 4,300 crore versus Rs 5,000 crore earlier, indicating a slight tapering. Year-to-date, smallcap inflows stand at Rs 27,000 crore, compared with Rs 37,500 crore for flexicap funds. He noted that investors are becoming more prudent, gradually shifting allocations from pure smallcap exposure toward flexicap schemes, which offer a balanced mix of large, mid, and smallcap stocks.

“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,” he said.Vardarajan noted that midcap funds saw around Rs 5,000 crore of inflows in September, surpassing smallcaps and ranking second only to flexicaps. However, he cautioned that midcap valuations appear stretched, being pricier than both small and largecaps. Despite this, retail interest remains steady, with year-to-date flows for midcaps and smallcaps almost evenly matched. He said it remains to be seen if this midcap momentum sustains, given the relative valuations and evolving investor preference toward diversified categories like flexicaps.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)