In March 2024, fund funding by way of SIP amounted to Rs 19,271 crore.
Compared to 73 lakh SIP accounts on the finish of March 2015, mutual funds at the moment have about 8.20 crore SIP accounts by way of which buyers repeatedly make investments.
Due to protected and wonderful returns, the Systematic Investment Plan ( SIP) has seen an over six-fold surge in month-to-month contributions within the final eight years. It is a kind of recurring deposit scheme the place one can make investments a set quantity in a mutual fund scheme periodically at fastened intervals. Thanks to the continued bull run, the overall influx into fairness mutual fund schemes by way of SIP has elevated by 28 per cent on an annual foundation to a file Rs 2 lakh crore within the monetary yr 2023-24. Investment in mutual funds by way of SIP was Rs 1.56 lakh crore within the monetary yr 2022-23. It was Rs 1.24 lakh crore within the yr 2021-22 and Rs 96,080 crore in 2020-2021.
According to the newest information from the Association of Mutual Funds in India (AMFI), mutual fund contributions by way of SIP have grown from Rs 3,122 crore on the finish of April 2016 to Rs 19,187 crore on the finish of February 2024. Compared to 73 lakh SIP accounts on the finish of March 2015, mutual Funds at the moment have about 8.20 crore SIP accounts by way of which buyers repeatedly make investments. The yearly SIP ebook has grown from Rs 43,921 crore in 2016-17 to Rs 1,79,948 crore in FY 2023-24.
In March 2024, fund funding by way of SIP reached an all-time excessive of Rs 19,271 crore. It was rs 14,276 crore in March 2023. SIP contribution has been greater than Rs 19,000 crore in two consecutive months–February and March this yr. It displays a pattern in the direction of a extra disciplined funding technique amongst buyers.
Karthik Jonagadla, small-case supervisor and founding father of Quantus Research, believes that the buyers gave extra significance to equities as a result of sturdy performances of the identical from final yr. “This shows that investors are regularly evaluating the portfolio, making changes accordingly,” he added.
Industry specialists imagine that an upbeat financial outlook together with rising market participation of retail buyers additionally helped in rising SIP flows. Investors proceed to believe in mutual funds.
An investor, opening an account in SIP, deposits a set quantity within the account each month. The fund home, then, invests in numerous choices to earn sturdy returns. The advantage of tax exemption can be obtainable on some SIP schemes.
