Good news continues to roll for the mutual fund industry. The average ticket size of SIP has increased from Rs.2500 in July 2016 to Rs.3200 in January 2017, shows the latest AMFI data.
In addition, the monthly inflows in mutual funds through SIPs has reached all time high at Rs.4100 crore in January 2017.
“SIP has been gaining popularity among Indian MF investors, as it helps in Rupee Cost Averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market,” said AMFI.
Experts attribute this to increasing awareness about the suitability of SIPs as the correct way of investing in mutual funds. AMFI data shows that the industry has currently about 1.27 crore (12.7 million) active SIP accounts as on January 2017. In fact, the data shows that the MF industry has been adding about 6.86 lakh SIP accounts each month on an average during the current financial year.
Explaining the growing popularity of SIPs, Chennai-based IFA D Muthukrishnan of Wise Wealth Advisors says, "Since banks have reduced the interest rates, investors are looking out for other investment opportunities and what is better than mutual funds for better risk adjusted returns. Also, many investors prefer investing a small amount at a fixed intervals instead of putting lumpsum amount.”
