80% SIPs have a ticket size of less than Rs.5,000

A majority of investors have a ticket size that is less than Rs.5,000. Recent CAMS data that covers 64% of the industry shows that nearly 80%, or nearly 1 crore, SIP accounts have a ticket size of up to Rs.5,000, as of December 2017.

Experts attribute this to multiple SIPs by a single investor. “Retail investors hesitate to invest a higher sum of money in one SIP. They prefer investing in different schemes across categories. Also, most of the investors, investing up to Rs.5,000, are from B15 cities having small ticket size,” said Tejal Gandhi of Money Matters.

Pradeep Kumar, CEO, Union Mutual Fund, believes that this is due to higher participation of first-time mutual fund investors. “Many first time investors start their SIP investments with a small amount. Once these investors gain confidence in mutual funds, they will increase their ticket size in SIPs,” he said.

While the T15 cities account for 49.92 lakh SIPs, B15 cities have more than 50 lakh such accounts. Overall, if we include SIPs over Rs.5,000 as well, T15 cities have 67 lakh SIP folios while B15 cities have around 60 lakh SIP folios.

AMFI data shows that the MF industry had added about 9.26 lakh SIP accounts each month on an average during the FY 2017-18, with an average SIP size of about Rs.3,300 per SIP account.

The industry currently has about 1.97 crore SIP accounts, as of January.

CAMS Serviced Funds Live SIP Accounts

Source: CAMS