In the past three years, mutual fund investors have stepped up SIP investments especially amid spells of turbulence in equity markets, shows the latest industry data report released by CRISIL and AMFI.
The report has taken data between April 2016 (when the AMFI started disclosing monthly SIP contributions) and June 2019.
Interestingly, whenever the equity markets saw a dip, MF investors have pumped in more money via SIP route in the next few months, shows the report. For example, between August 2016 and December 2016, Nifty 50 declined by nearly 1000 points. Meanwhile, investment in SIPs moved upwards. Other such periods include January 2018 to April 2018 and July 2018 to October 2018.
Between April 2016 and June 2019, the SIP route has added Rs.2.30 lakh crore to the MF industry AUM in three years. Of this, nearly Rs.43900 crore came in during FY 2017. The number rose to Rs.67200 crore in FY 2018 and Rs 92700 crore in FY 2019. During April-June 2019, nearly Rs.24500 crore of money have been pumped in through SIPs despite volatility.
To put the Rs. 2.30 lakh crore in perspective, the amount is nearly 19% of the overall increase in MF industry’s total AUM across all schemes. The MF industry added Rs.11.90 lakh crore in the corresponding period.
In fact, the share of contribution from SIPs to the industry’s overall AUM has risen steadily. The number has increased from around 8% in August 2016 to 11% in March 2019 and to 12% in June 2019.
