Investment in mutual funds through direct plan SIPs has been growing gradually.
An age-wise analysis of SIP accounts shows that direct plan SIPs account for 12.2% of the total SIP AUM. Of the total SIP AUM of Rs 2.40 lakh crore, Rs 29,341 crore has come from direct plan SIPs.
Further, for SIPs being held for less than a year, contribution of direct plan SIPs to the overall SIP AUM of the industry has increased to 15%. AUM assets which are in the industry for five years and more.through direct plan SIP was just 8% of the total SIP AUM if we look at SIP
|
SIP accounts continuation period |
Direct AUM (Rs crore) |
Total AUM |
Direct AUM proportion |
|
Over 5 years |
3,593.84 |
44,419.66 |
8.1% |
|
4-5 years |
1,543.38 |
14,404.13 |
10.7% |
|
3-4 years |
2,280.40 |
20,973.16 |
10.9% |
|
2-3 years |
4,821.67 |
40,328.13 |
12.0% |
|
1-2 years |
7,711.01 |
57,270.07 |
13.5% |
|
Less than 1 year |
9,390.84 |
62,490.97 |
15.0% |
|
Total |
29,341.14 |
239,886.12 |
12.2% |
Experts attribute this to the growing awareness about direct plans. In addition, ease of investment through apps like Zerodha, ET Money and Paytm Money has also played a major role. These apps allow a monthly SIP of as low as Rs 100.
While the regular plan SIPs still contribute a major portion i.e. nearly 88% to the total SIP AUM, it has reduced gradually over the years. The contribution of regular plan SIP in the total SIP AUM has decreased from 92% to 85% if we look at the data of the past five years and more.
|
SIP accounts continuation period |
SIP Regular AUM (Rs crore) |
Total AUM |
Regular AUM proportion |
|
Over 5 years |
40,825.82 |
44,419.66 |
91.9% |
|
4-5 years |
12,860.75 |
14,404.13 |
89.3% |
|
3-4 years |
18,692.76 |
20,973.16 |
89.1% |
|
2-3 years |
35,506.46 |
40,328.13 |
88.0% |
|
1-2 years |
49,559.06 |
57,270.07 |
86.5% |
|
Less than 1 year |
53,100.13 |
62,490.97 |
85.0% |
|
Total |
210,544.98 |
239,886.12 |
87.8% |
