Mutual fund assets under management (AUM) surpassed Rs 41 lakh crore for the first time in April, despite monthly flows through systematic investment plans (SIPs) falling to Rs 13,728 crore from Rs 14,276 crore in March.

According to Amfi figures for April, debt funds saw the highest monthly net inflows ever, at about Rs 1.1 lakh crore, despite the elimination of an essential tax break.

According to MF industry participants, the last two days of the month being weekly offs contributed to the drop in SIP flows. SIPs are typically grouped together in the first and last weeks of a month because salaries are credited during these times.

Despite the reduction in SIP flows, industry professionals believe that with the way investors are flocking to mutual funds, this figure may rise.

"Investors have continued to invest...via SIPs, which is encouraging." We expect gross monthly inflows through SIPs to reach Rs 17,000-18,000 crore per month by the end of the fiscal, indicating substantial growth potential,” said Amfi chief executive N S Venkatesh.