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Systematic investment plan (SIP) investments reached Rs 21,262 crore in June in the country, up from Rs 20,904 crore in May, the latest data from the Association of Mutual Funds in India (AMFI) said on Tuesday. 

This marks the third consecutive month where SIP inflows have exceeded Rs 20,000 crore.

According to Gopal Kavalireddi, Vice President of Research at FYERS, despite major events like year-end earnings, general elections, release of GDP and other economic data, and Rs 75,000 crore of FII outflows, Q1 FY25 saw Rs 94,222 crore in equity fund inflows, underscoring the resilience and confidence of investors in the Indian stock markets.

"However, with valuations stretched and some sectors appearing expensive, investors should consider being more cautious with fresh direct equity investments," he said.

The mutual fund industry’s net AUM increased by 3.8 per cent to Rs 61.15 lakh crore at the end of June, as against Rs 58.91 lakh crore as on May 31.

"The total folios count of 19,10,47,118 are at an all-time high in June. We have observed consistent positive inflows in equity schemes since April 2021. There will be a huge wealth creation opportunity in the coming 5-7 years. This will lead to significant growth of the upper-middle-class, HNI, and ultra-HNI population," said Hitesh Thakkar, Acting CEO, ITI Mutual Fund.

The Indian stock markets have experienced a significant upswing, driven by investor confidence in the stability of the political environment and belief in India's growth potential supported by timely reforms and policy decisions. Investors have successfully adopted a strategy of buying on every dip. Since the beginning of 2024, the Nifty50 index has increased by 12.5 per cent, while the Nifty Junior index has surged by 38.5 per cent, said market watchers.