Monthly inflows of Systematic Investment Plans (SIPs) of Mutual Funds could easily surge and nearly double to about ₹40,000 crore by December 2025, Swarup Mohanty, Vice Chairman & CEO, Mirae Asset Investment Managers (India) said.

This is against the recent July 2024 actual SIP inflows level of ₹ 23,332 crore seen by the MFs. In May 2018, the monthly SIP inflows was just ₹ 7,304 crore.

“If the equity markets continue like this, this average monthly SIP inflow of ₹40,000 crore could happen quicker than December 2025,” Mohanty said on Friday. Currently the number of SIP accounts stood at highest ever of 9.33 crore as of July 2024.

The SIP culture could be widespread more as and when ₹250 SIP becomes a reality, it was noted.

Mohanty did acknowledge that it is currently the huge liquidity flows that is playing a critical role in the buoyant equity markets. “It is the tail wagging the dog. It is liquidity that is driving the market. It’s right or wrong, I am not commenting,” he said.

Mohanty (Mirae) had last year predicted that monthly SIP inflows in mutual fund industry would touch ₹25,000 crore by December 2024. Going by the current trend, the monthly SIP flows may touch that level even before December 2024. Meanwhile, Mirae Mutual Fund, which started its journey in 2008, has, as of today, assets under management (AUM) a little shy of ₹2 lakh crore.

“We were hoping that today we will announce AUM of ₹2 lakh crore. But we are short of it today by ₹200 crore,” Mohanty said.

The frenetic growth in AUM in recent years can be gauged from the fact that AUM was only ₹22,000 crore in the year 2018.

As on date Mirae Mutual Fund is an equity dominated fund house with ₹1.6 lakh crore accounted for by equity schemes. “We want to diversify more into debt oriented products and not be equity dominated,” Mohanty told businessline. Noting that demographic dividend is playing out in the mutual fund industry, Swarup said that India, as the youngest country, will in the next 8-10 years be the highest wealth generating nation in the world.

“What used to be 65 percent of Indians at low income levels in 2005 will be reduced to 15 per cent in 2030. There is going to be some serious wealth that will be created in this country in next six to eight years,” he said. He also highlighted that the highest number of incremental family offices across the world will be registered in India in next few years.

In the current year to date, Mirae has added ten lakh customerswith the average age of 29.