Investor appetite shifts to safe assets: SIP flow record and gold ETF boom in August

The August SIP inflow of ₹32,297 crore, released by AMFI, set a fresh benchmark for Indian mutual funds, overtaking July’s ₹31,961 crore and the March high of ₹32,087 crore. This upward trajectory points to a disciplined, regular‑investment mindset among retail savers.

Account activity reflected this trend: new SIP accounts rose to 6.639 million, closures reached 5.382 million, leaving a total of 10.62 million active accounts. Gold ETFs recorded a net inflow of ₹2,596.7 crore, a 67% surge from the previous month, marking the third straight month of positive flow as investors flock to gold for stability amid escalating geopolitical and economic worries.

Silver ETFs also saw notable demand, with net inflows touching ₹1,270.63 crore. On the MCX, gold prices appreciated about 7.7% during August, reinforcing the attractiveness of gold ETFs as a cost‑effective, transparent investment vehicle.

Active equity mutual fund schemes attracted ₹29,328.62 crore, up 19% from July. Within equity, small‑cap funds commanded the largest share at ₹7,973 crore, followed by mid‑cap, flexi‑cap and large‑mid cap categories. On the fixed‑income front, investors pulled out ₹8,127.32 crore from debt‑only funds, while hybrid products enjoyed a net addition of ₹10,045 crore, led by multi‑asset allocation and arbitrage funds. Liquidity funds recorded inflows of ₹19,934 crore, while overnight funds experienced a net redemption of ₹30,654 crore.