The year 2021 proved to be an excellent year for the mutual fund industry, especially in the context of SIPs. Be it the new registrations or monthly contributions, SIPs set new records in 2021.
Till November, a total of 2.2 crore new SIP accounts were opened by investors in 2021 as against 90 lakh discontinuations. As a result, the industry added a net of 1.3 crore SIP accounts between January and November 2021.
The best part is that the account additions have come at a consistent pace. From June to November, SIP account additions were in excess of 20 lakh every month, which is significantly higher than the long term average.
A similar story played out in the case of monthly SIP contributions. Month after month, investors have been pumping higher amount of money through SIPs in the second half of 2021. From July onwards, SIP contribution has established a new record every month.
As a result of higher contributions and a rally in equity markets, SIP AUM was also on a record run. From Rs. 3.9 lakh crore in January, SIP AUM reached Rs. 5.4 lakh crore in November.
In the 11-month period, 2.27 crore new folios were added. As a result, the total folio count jumped from 9.5 crore in January to 11.7 crore in November.
