Discontinuation in SIPs declined in June 2019 (5.4 lakh) compared to May (5.86 lakh), shows recent AMFI data.
Analysing historical data we see another positive - the number of new SIPs registered have increased in the first quarter of FY 19-20. In the first half of last financial year, the industry had added around 10 lakh SIPs each month. However, post the Supreme Court ruling disallowing the use of Aadhaar for eKYC, the number fell to around 7 lakh SIPs per month. This seems to be changing again though. In the first three months of this financial year, the industry has added on an average 9.32 lakh SIPs per month.
Net SIPs, which is new SIP registered minus discontinued SIPs, are also reflecting a similar trend. While the net SIPs were in the range of 1.87 lakh to 3.14 lakh between November 2018 and March 2019, the net SIP numbers are over 3.6 lakh every month between April-June 2019, shows a recent AMFI report.
Akhil Chaturvedi, Associate Director-Head-Sales & Distribution, Motilal Oswal MF feels that the increase in SIP registrations may be due to multiple factors. One, many investors who were waiting on the sidelines before election might have decided to enter the market after seeing a stable mandate. Moreover, macro-economic factors have also turned in the favour of India in the last few months, which is another positive. Finally, he credits the distributor fraternity for convincing investors to invest in low markets to reap maximum benefit from SIP.
SIP Trend in FY19-20
|
Month |
Total No. of outstanding SIP Accounts |
No. of New SIPs registered |
No. of SIPs discontinued |
SIP AUM Rs. crore |
SIP Contribution Rs. crore |
|
Apr – Jun 19 |
273.55 |
27.96 |
16.66 |
2,81,393 |
24,543 |
|
Jun 19 |
273.55 |
9.29 |
5.40 |
2,81,393 |
8,122 |
|
May 19 |
269.66 |
9.65 |
5.86 |
2,79,629 |
8,183 |
|
Apr 19 |
265.87 |
9.02 |
5.40 |
2,69,621 |
8,238 |
|
|
|
|
|
|
|
|
Apr 18- Mar 19 |
262.25 |
109.54 |
58.75 |
2,66,815 |
92,693 |
Source: AMFI
SIP Trend in FY18-19
|
Month |
Total No. of outstanding SIP Accounts |
No. of New SIPs registered |
No. of SIPs discontinued |
SIP AUM ₹ crore |
SIP Contribution Rs. crore |
|
Apr 18- Mar 19 |
262.25 |
109.54 |
58.75 |
2,66,815 |
92,693 |
|
|
|
|
|
|
|
|
Mar-19 |
262.25 |
8.87 |
5.76 |
2,66,815 |
8,055 |
|
Feb-19 |
259.14 |
7.54 |
4.96 |
2,43,539 |
8,095 |
|
Jan-19 |
256.56 |
7.97 |
5.36 |
2,39,595 |
8,064 |
|
Dec-18 |
253.95 |
7.23 |
5.36 |
2,40,147 |
8,022 |
|
Nov-18 |
252.08 |
7.58 |
4.44 |
2,31,279 |
7,985 |
|
Oct-18 |
248.94 |
9.35 |
4.66 |
2,17,818 |
7,985 |
|
Sep-18 |
244.25 |
10.64 |
4.79 |
2,17,621 |
7,727 |
|
Aug-18 |
238.4 |
10.7 |
4.82 |
2,32,167 |
7,658 |
|
Jul-18 |
232.52 |
10.16 |
6.26 |
2,19,884 |
7,554 |
|
Jun-18 |
228.62 |
10.34 |
4.52 |
2,05,650 |
7,554 |
|
May-18 |
222.8 |
10.36 |
3.83 |
2,14,064 |
7,304 |
|
Apr-18 |
216.27 |
8.8 |
3.99 |
2,14,302 |
6,690 |
Source: AMFI
