MF industry adds over 1 crore SIPs in 11 months

The latest AMFI report shows that the industry has added over 1.06 crore SIP accounts in April-February 2019.

The total number of SIP account was 2.59 crore as on February 2019. This is a healthy 23% growth over last financial year. (In March 2018 there were 2.11 crore SIP accounts in the industry.)

SIP AUM too grew in line with the increase in folios. Between March 2018 (Rs.1.99 lakh crore) and February 2019 (Rs.2.44 lakh crore) the industry’s SIP AUM grew by 23%. With industry’s average AUM for the month at Rs. 23.17 lakh crore, it puts the total SIP AUM at 10.5% of the industry’s AUM.

When it comes to SIPs, regular plans continue to rule. This was reflected in the current data as 89% (2.30 crore) of the industry’s total SIP accounts came through the regular route. In terms of SIP AUM too regular plans contributed 90% (Rs. 2.19 lakh crore) of the industry’s total SIP AUM. These numbers reflect the important role played by mutual fund distributors in getting retail investors into the SIP fold.

On a more subdued note, there has been a slight slowdown in pace of growth of SIP folios in the last four months. From around 10,000 new folios being created each month, the number has dropped to 7,000 folios. Akhil Chaturvedi, Associate Director- Head-Sales & Distribution, Motilal Oswal MF believes the lower SIP inflows was due to recent market volatility. According to him, investors are taking a cautious approach and waiting for the markets to settle. Once there is more clarity post elections, he expects investments through SIPs to increase again.

SIP account trend

Source: AMFI