You can say that SIP growth story is largely due to mutual fund distributors. The latest AMFI data shows that SIPs in regular plans account for 89% of the total SIPs.
Of the 2.54 crore SIP folios, distributors have created 89% of SIP accounts i.e. 2.26 crore.
In absolute terms, SIP contribution in regular plans account for 88% of the total inflows through SIPs. As on December 2018, the industry has witnessed inflows of Rs.8022 crore through SIPs which includes RS.7063 crore (88%) from regular plans and Rs.959 crore (12%) from direct plans.
Distributors have highest number of SIP accounts in both locations – T30 (1.22 crore SIP accounts) and B30 (1.04 crore SIP accounts). In percentage terms, IFAs brought in 89% of the SIP accounts in T30 cities and B30 cities.
On the other hand, direct investors have opened 15 lakh and 12 lakh SIPs accounts in T30 and B30 cities, respectively.
Meanwhile, SIP AUM was Rs.2,40,147 crore which is 10.5% of the overall MF Industry AUM.
Experts attribute this to the crucial role of distributors in guiding and educating clients about equity funds. Investors seeking long term wealth creation prefer SIP route. However, with hundreds of equity schemes available in the market today, investors seek advisors help to invest, say experts.
