The number of new SIP registration is growing on a monthly basis. Thanks to the upbeat sentiment among retail investors, equity funds are witnessing massive inflows.
Data from MFDEx CAMS which tracks about 94% of the industry shows that new SIP registration in B15 cities witnessed a growth of nearly 47% in June from January. The number of new registration stood at nearly 3.5 lakh compared to 2.3 lakh in January, an increase of more than a lakh. The total new SIP registration from January to June stood at 18 lakh.
On the other hand, T15 cities witnessed 50% increase in new SIP registrations. It increased by 1.4 lakh from 2.9 lakh in January to 4.2 lakh in June. The total new SIP registration from T15 cities stood at 22 lakh.
Experts attribute the growing investor appetite for equity funds to the lower returns in the traditional savings avenues and the investor awareness campaigns run by AMCs and financial advisors. SIP has become the preferred vehicle to invest in the markets for both new as well as existing investors.
Financial advisors recommend SIPs to their clients as investors do not have to worry about market volatility and timing the market as it works on rupee cost averaging.
As on June, the industry had a total of 1.45 crore SIP accounts, according to AMFI data. It increased by 18 lakh or 14% from 1.27 crore in January. Moreover, industry has added over 20 lakh SIP accounts in the first three months of FY18.
The SIP accounts tend to be sticky as investors stay invested for a longer period as compared to lumpsum investment. In a note sent to fund houses by AMFI, it was revealed that close to six out of 10 SIPs have been active for more than five years as on April.
