Inflows through SIP has risen considerably from last fiscal, even as the net addition in SIP accounts have witnessed a slowdown. Net addition in SIP accounts is the difference between number of new registered SIPs and discontinued/matured SIPs.
AMFI data shows that between April and December of 2019, the amount collected through SIPs has risen to Rs 74,398 crore, as against Rs 68,479 crore in the corresponding period last fiscal.
Meanwhile, the MF industry added 35.5 lakh net SIP accounts during April-December 2019, as against 42.5 lakh accounts in the corresponding period of 2018. This was due to an increase in discontinued or matured SIPs.
During April-December 2019, the MF industry added 86 lakh new SIP accounts, while 50.5 lakh SIP accounts matured or were discontinued. In the corresponding period of 2018, the industry added 85.2 lakh SIP accounts while 42.7 lakh SIP accounts matured or were discontinued.
|
Month |
No. of New SIPs registered (in lakh) |
No. of SIPs discontinued or matured (in lakh) |
SIP AUM |
SIP Contribution |
|
₹ crore |
₹ crore |
|||
|
APR-DEC 2018 |
85.16 |
42.67 |
68,479 |
|
|
Dec-18 |
7.23 |
5.36 |
2,40,147 |
8,022 |
|
Nov-18 |
7.58 |
4.44 |
2,31,279 |
7,985 |
|
Oct-18 |
9.35 |
4.66 |
2,17,818 |
7,985 |
|
Sep-18 |
10.64 |
4.79 |
2,17,621 |
7,727 |
|
Aug-18 |
10.7 |
4.82 |
2,32,167 |
7,658 |
|
Jul-18 |
10.16 |
6.26 |
2,19,884 |
7,554 |
|
Jun-18 |
10.34 |
4.52 |
2,05,650 |
7,554 |
|
May-18 |
10.36 |
3.83 |
2,14,064 |
7,304 |
|
Apr-18 |
8.8 |
3.99 |
2,14,302 |
6,690 |
|
Month |
No. of New SIPs registered (in lakh) |
No. of SIPs discontinued or matured (in lakh) |
SIP AUM |
SIP Contribution |
|
₹ crore |
₹ crore |
|||
|
Apr – Dec 19 |
85.99 |
50.51 |
74,398 |
|
|
Dec-19 |
9.62 |
5.91 |
3,17,022 |
8,518 |
|
Nov-19 |
10.89 |
5.55 |
3,12,155 |
8,273 |
|
Oct-19 |
10.03 |
5.3 |
3,03,400 |
8,246 |
|
Sep-19 |
8.5 |
5.63 |
2,88,735 |
8,263 |
|
Aug-19 |
8.8 |
5.83 |
2,71,105 |
8,231 |
|
Jul-19 |
10.19 |
5.63 |
2,68,864 |
8,324 |
|
Jun-19 |
9.29 |
5.4 |
2,81,393 |
8,122 |
|
May-19 |
9.65 |
5.86 |
2,79,629 |
8,183 |
|
Apr-19 |
9.02 |
5.4 |
2,69,621 |
8,238 |
Source - AMFI
Industry experts feel that the rise in SIP inflows is heartening and it outweighs the slightly lower addition in number of net SIP accounts this year.
Ashutosh Bishnoi, MD & CEO, Mahindra MF feels that SIP’s success should be measured on the basis of constantly rising inflows, especially amid concerns over growth and market volatility. This underlines a sharp sustained retail investor interest in equity funds.
Moreover, popularity of features such as SIP top-up have led to rise in SIP inflows, even as the net addition in SIP accounts have slowed down.
Jimmy Patel, MD & CEO, Quantum MF explained that SIP top-up ensures an investor has the option to increase the amount of SIP by a fixed amount at pre-defined intervals. This enhances the flexibility of the investor to invest higher amounts during the tenure of the SIP.
As on December 2019, SIP AUM was Rs 3.2 lakh crore, around 12% of the overall MF Industry AUM.
