Recent data shows that SIP discontinuation has increased substantially in the last one year.
Discontinuation in SIPs increased to 33.75 lakh in April-September this fiscal, as against 28.21 lakh in the corresponding period last fiscal, shows AMFI data.
Moreover, the number of new SIP registrations have also witnessed a decline. The number of new SIP new registrations decreased to 55.45 lakh in the first half of this fiscal compared to 61 lakh in April-September 2019.
Experts attributed this partly to the Supreme Court ruling that disallowed the use of Aadhaar for eKYC.
Post the Supreme Court decision, the number of new SIP registrations has fallen sharply. Between November 2018 and February 2019, the number ranged between 7-8 lakh SIPs per month. This was sharply lower than the number of new SIPs added in the April-September period of 2018. During this period, the MF industry had added around 10 lakh SIPs each month.
Net SIPs, which is new SIP registered minus discontinued SIPs, were in the range of 2.87 lakh to 4.56 lakh between April and September this year and the average net SIP stood at 3.62 lakh for each month. For FY 2018-19, the range was 3.90 lakh to 6.53 lakh and the monthly average stood at 5.47 lakh.
|
Month |
Total No. of outstanding SIP Accounts |
No. of New SIPs registered |
No of SIPs discontinued |
Net SIPs (in lakh) |
SIP AUM (Rs crore) |
SIP Contribution (Rs crore) |
|
Apr – Sep 19 |
283.95 |
55.45 |
33.75 |
21.7 |
2,88,735 |
49,361 |
|
Sep-19 |
283.95 |
8.5 |
5.63 |
2.87 |
2,88,735 |
8,263 |
|
Aug-19 |
283.95 |
8.8 |
5.83 |
2.97 |
2,71,105 |
8,231 |
|
Jul-19 |
281.08 |
10.19 |
5.63 |
4.56 |
2,68,864 |
8,324 |
|
Jun-19 |
278.11 |
9.29 |
5.4 |
3.89 |
2,81,393 |
8,122 |
|
May-19 |
273.55 |
9.65 |
5.86 |
3.79 |
2,79,629 |
8,183 |
|
Apr-19 |
265.87 |
9.02 |
5.4 |
3.62 |
2,69,621 |
8,238 |
|
Month |
Total No. of outstanding SIP Accounts (In lakh) |
No. of New SIPs registered (In lakh) |
No of SIPs discontinued (In lakh) |
Net SIPs (in lakh) |
SIP AUM (Rs crore) |
SIP Contribution (Rs crore) |
|
Apr – Sep 18 |
244.25 |
61 |
28.21 |
32.79 |
2,17,621 |
44,487 |
|
Sep-18 |
244.25 |
10.64 |
4.79 |
5.85 |
2,17,621 |
7,727 |
|
Aug-18 |
238.4 |
10.7 |
4.82 |
5.88 |
2,32,167 |
7,658 |
|
Jul-18 |
232.52 |
10.16 |
6.26 |
3.9 |
2,19,884 |
7,554 |
|
Jun-18 |
228.62 |
10.34 |
4.52 |
5.82 |
2,05,650 |
7,554 |
|
May-18 |
222.8 |
10.36 |
3.83 |
6.53 |
2,14,064 |
7,304 |
|
Apr-18 |
216.27 |
8.8 |
3.99 |
4.81 |
2,14,302 |
6,690 |
Source- AMFI
