Despite the difficulties caused by the covid-19 pandemic, individual MFDs registered 79% more SIPs in FY 2021 than in FY 2020. A report released by IDFC MF shows that individual MFDs registered 20.86 lakh SIPs in the previous financial year compared to 11.63 lakh in FY 2020.
RIAs and fintechs maintained their lead position in SIP registrations by enrolling over 36 lakh new SIPs. The figure was up 71% from FY 2020.
The report captures MFDex data released by CAMS, which covers 96% of the overall industry.
Some distributor segments witnessed a fall in SIP registrations. Corporate, in-house and overseas distributors registered over 50% fall in SIP registrations.
FY 2021 saw the count of individual MFDs doing over 50 monthly SIPs rising significantly. The last financial year saw 225 MFDs doing over 50 SIPs every month as against 196 in FY 2020.
An analysis of the data indicated that SIP registrations did suffer due to the pandemic in the first half of FY 2021. But a stellar recovery in the second half ensured an overall good financial year for distributors.
“FY21 was an extremely volatile year with many struggling to ensure job security and a steady cashflow. Additionally, extreme market volatility meant that many investors were jittery after the fall and refrained from investing in equities, with many of them deciding to stop their SIPs. However, as the scenario improved, investors restarted investments via SIP through their trusted MFDs,” said Gaurab Parija, Head – Sales & Marketing, IDFC AMC.
