SIP investors focus on financial goals and stay put for long term. This is borne by AMFI data that shows that 57% of the total SIP accounts are active for more than five years.
Of the 1.88 crore SIP accounts as on December 2017, 1.06 crore or 57% SIPs are active for over five years. The total AUM of SIP accounts active for over five years was Rs.41,067 crore.
Experts attributed this to goal based investments and increased awareness about mutual funds. Akshay Gupta, CEO, Indiabulls Mutual Fund said, “Many investors who have seen at least one market cycle, realized the significance of investing in mutual funds through SIP. These investors stay put for long term and understand rupee cost averaging. In future, we will see large number of retail investors invest in mutual funds for long term through SIPs.”
Seconding Akshay, G. Pradeepkumar, CEO, Union Mutual Fund pointed out that many investors are increasingly opting for perpetual SIPs. “Since many distributors ask their clients to link their investment with the financial goals, many investors have been opting for perpetual SIPs,” he said.
AMFI data also shows that the industry mopped up close to Rs.47,000 crore in April-December through SIPs. In addition, the MF industry has added 9.26 lakh SIP accounts each month on an average during the first nine months of FY 2017-18, with an average SIP ticket size of Rs.3,300.
In fact, the total AUM of SIP stood at Rs.2.02 lakh crore as on December, i.e. 9.5% of the overall AUM of the mutual fund industry.
Most of these SIPs has come through distributors. AMFI data shows that regular plans constituted 1.7 crore SIP accounts while 17.20 lakh SIPs were in direct plans. The AUM of SIPs under regular plan is Rs.1.85 lakh crore whereas the AUM of SIPs through direct plans stood at Rs.17,000 crore.
Age-wise analysis of SIP Accounts as on 31-Dec-17
|
SIP Accounts continuing for |
No. of SIP Accounts |
% to Total |
|
> 5 years |
1,06,13,669 |
56.52 |
|
> 4 years up to 5 years |
10,83,727 |
5.77 |
|
> 3 years up to 4 years |
9,06,806 |
4.83 |
|
> 2 years up to 3 years |
18,54,551 |
9.87 |
|
> 1 year up to 2 years |
15,06,936 |
8.02 |
|
Less than < 1 year |
28,14,513 |
14.99 |
|
Total |
1,87,80,202 |
100 |
Source: AMFI
