The assets in systematic investment plan (SIP) accounts in the past few years have been growing at a much faster pace than the MF industry’s overall assets under management (AUM), reveals data from the Association of Mutual Funds in India.
In the past year, SIP AUM has risen 22 per cent, from ₹5.5 trillion to ₹6.6 trillion. During the same period (November 2021 to October this year), the overall AUM of the MF industry rose only 6 per cent to ₹39.5 trillion.
As a result, the share of SIP AUM in the total assets of the MF industry is rising consistently, reported Business Standard.
In October, SIPs accounted for 16.8 per cent of total AUM, significantly higher than what they were a year ago (14.8 per cent).
The growing portion of SIPs in the industry’s AUM is a result of higher participation from retail investors.
The MF industry added a record number of new investors in 2021-22 and is continuing to add about 400,000 new investors on average in 2022-23.
In October, SIP inflows rose for the fourth straight month to touch the ₹13,000-crore mark for the first time. The inflows have been rising consistently in a post-Covid era, irrespective of the market condition. The figure used to be around ₹8,000 crore before the pandemic reared its ugly head.
October also marked a reversal in net SIP inflows, which are gross SIP inflows minus redemptions from SIP accounts.
Last month, the net SIP inflows surged for the first time in four months, signifying a decline in redemptions from SIP accounts.
The net SIP inflows stood at ₹7,500 crore in October, up 17 per cent from ₹6,400 crore in September.