MF industry’s long-term SIP has remained largely intact even in the lockdown quarter Apr-Jun 2020.
Latest AMFI data shows that at the end of June nearly 17.8% of the industry’s total SIP AUM has remained active for over 5 years in the MF industry. A quarter ago i.e. at the end of March, the number stood at 18.5%, only marginally higher than June.
Industry experts attribute this to the sharp recovery in equity markets. They feel that the recovery has helped the industry recoup the mark to market losses. Further, it also soothed the frayed nerves of MF investors and became a comforting factor for investors to stay put.
Overall, the industry’s total SIP AUM stood at Rs 3 lakh crore at the end of June as against Rs 2.4 lakh crore at March end. SIP AUM active for over 5 years stood at Rs 53,618 crore at June end as against Rs 44,419 crore at March end.
Moreover, hand holding by distributors has also played a crucial role. In regular plans, 19% of industry’s total SIP AUM has remained active over 5 years by the end of June, as against 19.4% at the end of March.
Meanwhile, in case of direct plans, the SIP longevity figures were lower than regular plans. Nearly 9.8% of industry’s total direct SIP AUM has remained active for over 5 years at the end of June, as against 12.2% at the end of March. Experts attribute this to the lack of handholding in some of the direct platforms as compared to regular plans to ride through volatility.
(June data, AUM in Rs Cr)
|
SIP continuing for |
Direct AUM |
Proportion |
Regular AUM |
Proportion |
Total AUM |
Proportion |
|
>5 years |
3,683 |
9.85% |
49,935 |
18.95% |
53,618 |
17.82% |
|
>4 years up to 5 years |
1,876 |
5.02% |
17,335 |
6.58% |
19,212 |
6.38% |
|
>3 years up to 4 years |
3,427 |
9.17% |
25,153 |
9.54% |
28,580 |
9.50% |
|
> 2 years up to 3 years |
6,392 |
17.10% |
45,046 |
17.09% |
51,438 |
17.09% |
|
>1 year up to 2 years |
9,937 |
26.59% |
60,141 |
22.82% |
70,077 |
23.29% |
|
Less than <1 years |
12,061 |
32.27% |
65,942 |
25.02% |
78,003 |
25.92% |
|
Total |
37,376 |
|
263,552 |
|
300,928 |
|
(March data, AUM in Rs Cr)
|
SIP Continuing for |
Direct AUM |
Proportion |
Reg AUM |
Proportion |
Total |
Proportion |
|
>5 years |
3593.84 |
12.25% |
40825.82 |
19.39% |
44419.66 |
18.52% |
|
>4 years up to 5 years |
1543.38 |
5.26% |
12860.75 |
6.11% |
14404.13 |
6.00% |
|
>3 years up to 4 years |
2280.4 |
7.77% |
18692.76 |
8.88% |
20973.16 |
8.74% |
|
> 2 years up to 3 years |
4821.67 |
16.43% |
35506.46 |
16.86% |
40328.13 |
16.81% |
|
>1 year up to 2 years |
7711.01 |
26.28% |
49559.06 |
23.54% |
57270.07 |
23.87% |
|
Less than <1 years |
9390.84 |
32.01% |
53100.13 |
25.22% |
62490.97 |
26.05% |
|
Tot |
29341.14 |
|
210544 |
|
239885.14 |
|
