Bulwark against closure storm: SIPs ride out the withdrawal gust

Despite a record number of account closures, redemptions from mutual fund (MF) systematic investment plan (SIP) accounts only slightly exceeded the average of the previous six months.
 

Investors withdrew Rs 11,678 crore from SIP accounts last month, compared to an average of Rs 10,436 crore in the preceding six months. Adjusted for these redemptions, net SIP inflows in May totalled Rs 9,226 crore, which represents 44 per cent of the gross SIP inflows amounting to Rs 20,904 crore, according to data from Amfi.
 

The net SIP data lends credence to the view that the sharp increase in SIP account closures