Latest news with #VenkatChalasani
The Hindu
14-05-2025
- Business
- The Hindu
Cancelled SIPs tripled in April as AMFI implemented SEBI norms on cancellations
The number of SIP cancellations more than tripled to 162.3 lakh in April compared with the previous month, creating a perception that market volatility had spooked investors in mutual funds. However, The Hindu has learnt that this surge in cancellations had more to do with the rules laid out in a SEBI circular rather than fears among investors. In a circular, reviewed by The Hindu, dated January 3, 2024, the Securities and Exchange Board of India (SEBI), India's capital markets regulator, had said SIPs with more than three consecutive failed instalment- payment attempts were to be accounted as invalid. This applied to daily, weekly, monthly and fortnightly contributions. SIPs with quarterly and bimonthly contributions will be invalid after missing payment for two consecutive time periods, the circular read. AMCs must process the cancellation within 10 days from the day the investor makes the request, SEBI added in the circular. SEBI had given the AMCs and AMFI time till April 1, 2024 to provide more transparent data on cancelled SIPs. Before the circular, data on the number of SIP accounts included inactive accounts too. The circular was to improve data dissemination. 'The entire cleaning up process took longer than expected. While in respect of all the future transactions, they implemented it, but legacy accounts could not be cleaned up. And that cleaning up process, we have initiated in the month of December, January (2025),' said Venkat Chalasani, chief executive officer of AMFI. The backlog of all invalid accounts were starting to be cleaned up in January 2025. The number of discontinued accounts grew 56% in January, 21% in February and declined 15% in March 2025 and then tripled in April. AMFI has also started showing the number of contributing SIPs, which range between 70-80% of the total outstanding accounts from April 2024. 'This month we have totally completed the clean-up process,' Mr. Chalasani said. With the new data added, it counts only the number of contributing SIPs and the number of outstanding SIPs. The monthly dip can hence be calculated by finding the share of non-contributing accounts in the total outstanding SIP accounts. The comments of AMFI assumes significance as the increase in the number of discontinued SIPs coincided with correction and market volatility, creating fears of mutual fund investors being spooked by the markets.
Business Recorder
09-05-2025
- Business
- Business Recorder
Flows to Indian equity mutual funds drop to one-year low in April
Inflows into India's equity mutual funds fell for the fourth consecutive month in April, reaching their lowest in a year amid market volatility triggered by U.S. tariff concerns, data showed on Friday. Net inflows fell 3.24% month-on-month in April to about 242.69 billion rupees ($2.83 billion), data from the Association of Mutual Funds in India (AMFI) showed. However, expectations of India's economic resilience to tariffs, along with hopes of a trade deal and favourable valuations helped limit the decline, while buying extended into the 50th straight month. Inflows into largecap funds rose 7.75% to 26.71 billion rupees in April, while midcap and smallcap inflows fell 3% and 2.2% to 33.14 billion rupees and 40 billion rupees, respectively, the AMFI data showed. The benchmark Nifty 50 index rose 3.5% in April. The small-cap and mid-cap indexes gained 2.2% and 4.8%, respectively. Indian benchmarks may open higher on easing trade woes, foreign inflows 'Largecaps are relatively more appealing now than they were in September 2024, when the benchmarks hit a record high,' said S Naren, executive director and chief investment officer at ICICI Prudential AMC. The Nifty 50's 12-month forward price-to-earnings ratio has fallen to about 21x at the end of April, from 24.4x at the end of September. Contributions via systematic investment plans (SIPs) rose 2.7% to a record high of 266.32 billion rupees, with the number of contributing SIP accounts rising to 83.8 million from 81.1 million in March. While global trade uncertainties remain a headwind, India's investment cycle is likely to be on a medium-term uptrend supported by the likelihood of trade deal with the U.S., recovery in earnings and economic growth, two analysts said. 'The sustained equity inflows for 50 months indicate steady interest from mutual fund investors, but flows in the near-term could be very volatile given the India-Pakistan tensions,' AMFI CEO Venkat Chalasani said. Given the likelihood of continued domestic rate easing in 2025, return of foreign inflows, expectations of earnings and growth recovery could accelerate inflows into mutual funds once the volatility in funds subsides, Chalasani said.
