What is happening with HNI flows?
SIP inflows have remained very strong, staying in the ₹30,000 to ₹32,000 crore range, which shows that retail participation continues to remain healthy. On the lump-sum side, the flows have been more subdued, and based on the flow pattern, HNI participation in equities appears to have moderated in some months, including May and July. But HNIs have a lot more options today and there is a lot of distraction in this category. There is a growing push towards AIFs, PMS and other specialised products, often with the pitch that, “I will do it cheap. I will take a small advisory fee in future.” So, some of the incremental HNI money is moving towards these products, while mutual funds continue to see strong participation from the SIP segment.
