Fund houses asked to disclose SIP contribution over accuracy concerns

Experts say move could give clearer picture on impact on flows in current conditions

The Association of Mutual Funds in India (Amfi) has sought data on systematic investment plans (SIPs) from individual fund houses, to rule out any concerns over the accuracy of the monthly SIP data.

Experts say the move could give a more real picture on how the SIP flows are doing in the current environment.

“Gross collection of data through registrar & transfer agents (RTAs) may have not been indicative of the true impact on flows amid the prevailing conditions. However, this methodology could bring in more clarity on how clients and advisors are considering SIPs, whether it is based on latest performance or consistency,” said Amit Bivalkar, founder and director at Sapient Wealth.

“… it is felt expedient to collect the SIP data from individual AMCs from now on, so as to rule out any doubt about the correctness of the data provided by the RTAs,” Amfi said in a communication to fund houses.

Earlier, the industry body sourced data from RTAs, to reduce reporting burden on MFs.

According to Amfi’s format, the MFs will have to share data for the number of live SIP accounts, SIP contribution collected and SIP assets managed at the end of the month.

Further, the fund houses will also have to provide data on the ageing of the SIPs, i.e. number of accounts that are less than one-year old, between one-two years, two-three years, three-four years, four-five years and over five-year old.

The industry body has also sought SIP data from MFs for April and May, so that if there is any differences with the RTA-sourced data, it can be corrected on a retrospective basis.

According to current SIP disclosures, the SIP book has contracted six per cent; from peak of Rs 8,641 crore to Rs 8,123 crore in May.

Industry participants suggest the move on changing on how SIP data is collated can throw up surprises for the Rs 24 trillion MF industry, as investor sentiments have been weak, but it may not be reflected in the gross SIP contribution data.