Retail investors are pouring money into mutual funds through SIPs like never before. The first half of FY 2022 has set new records both in SIP account additions and contribution. SIP AUM is also at the highest level, thanks to the inflow of fresh money and the ongoing rally in equity markets.
An analysis of AMFI data shows that a total of 1.26 crore SIP accounts were registered in the first six of months of FY 2022 (April to September), which is a notch higher than the total registrations in the whole of FY 2021 (1.25 crore).
*in lakhs
However, SIP discontinuations has also risen simultaneously. From 6.6 lakh in May, the number reached 10.26 lakh in September. Despite that the SIP stoppage ratio has been on the lower side for the last 4 months. The monthly SIP discontinuations dropped to 38% of new registrations in September from 50% in April.
A growth trend was also seen in monthly SIP contributions. With a uniform growth between April and September, monthly SIP contributions reached Rs 10,351 crore in September. This was the first time that SIP inflows crossed the Rs 10,000 crore mark.
*SIP AUM is in Rs lakh crore (showed in green bars) | *SIP contribution is in Rs crore (showed in orange line)
As of September-end, 11.17 crore folios were present in the industry. In previous two months, 31 lakh new folios were registered.
*Folio count is crore (showed in red bars) | *Folio additions is in lakhs (showed in yellow line)
