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MF News It is IFAs behind SIP growth story

It is IFAs behind SIP growth story

IFAs have activated 6.56 lakh crore accounts in April-June 2018.
Team Cafemutual Aug 19, 2018

Of the total 22 lakh new SIPs created between April 2018 and June 2018, IFAs and NDs have activated close to 11.50 lakh folios or 51% of the overall new SIP addition, shows the latest CAMS data, which covers 65% of the industry.

While IFAs have created 6.56 lakh new SIPs in April-June 2018, national distributors activated 4.93 lakh SIPs in last quarter. Banks followed IFAs and NDs with 4.40 lakh SIPs with a major portion of it coming from private banks. Direct plan investors have created over 3 lakh SIPs in April-June 2018.

However, most of these SIPs amounted to less than Rs.2500. The data shows that majority of SIP accounts i.e. 11.77 lakh or 53% of the total SIP accounts reported investor commitment in the range Rs. 1,000 to Rs. 2,499. Similarly, 18% of SIP accounts or 3.92 lakh SIPs have come with the ticket size between Rs.2500 and Rs.4999. Close to 15% or 3.33 lakh SIPs have ticket size between Rs.5000 and Rs.9999.

In terms of geographical location, T30 and B30 locations reflect similar trends with majority of SIPs falling in Rs. 1,000 to Rs. 2,499 bracket followed by Rs. 2,500 to Rs. 4,999 bracket and Rs. 5,000 to Rs. 9,999 bracket.

Overall, the data shows that most investors tend to start SIPs in the range of Rs. 1,000 to Rs. 9,999. SIP investments in Rs. 50,000 and above bracket are particularly low with just 10,572 new SIP accounts.

IFAs have been top mobilisers of SIP accounts across different investment brackets ranging between Rs. 1,000 and Rs. 49,999.  On the other hand, smaller SIPs that is SIPs below Rs. 1,000 have predominantly come through the direct route while banks have brought in SIPs above Rs.50,000.

Overall data combining T30 and B30 locations

 

Less than 1,000

1,000-2,499

2,500–4,999

5,000–9,999

10,000-49,999

50,000 & above

Grand Total

Direct

35,291

1,53,811

51,961

46,129

23,987

1,601

3,12,780

IFA

24,941

3,16,543

1,31,092

1,18,664

61,948

2,832

6,56,020

National Distributors

20,667

2,59,457

87,443

85,005

39,173

1,700

4,93,445

PSU Banks

12,080

1,44,575

19,147

13,206

4,184

147

1,93,339

Other Banks

4,147

1,32,467

49,023

31,182

27,021

3,145

2,46,985

Regional Distributors

3,150

30,673

7,932

5,894

2,787

224

50,660

Others

20,493

1,39,352

44,951

33,024

16,624

923

2,55,367

Total

1,20,769

11,76,878

3,91,549

3,33,104

1,75,724

10,572

22,08,596

%age of total SIPs mobilised

5%

53%

18%

15%

8%

0.5%

100%

Source: CAMS

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