An analysis of SIP longevity data shows that mutual fund distributors brought more SIP accounts compared to direct platforms in 2021.
Of the total 2.40 crore SIP accounts opened during Jan-Dec 2021, MFDs account for over 52% of the new accounts. They have added close to 1.26 crore new SIP accounts in the MF Industry. On the other hand, direct platforms and mutual funds companies have collectively created close to 86 lakh SIPs.
SIP numbers and methodology
2021 may have marked the start of a new investing era in India as SIPs added investors at a record pace last year, resulting in massive inflows through the systematic route.
In 2021, a total of 2.4 crore new SIP accounts were opened as against 99 lakh discontinuations. As a result, the industry has added a net 1.4 crore accounts in 2021.
This is just the overview of the adoption of SIPs in India. As an MFD, you might be curious to know as to who are the major drivers behind this growth — MFDs, NDs and RIA who sell regular plans or online players who mostly sell direct plans?
As AMFI does not releases any such data directly, we tried to figure out the popularity of regular and direct plans through AMFI's 'SIP age' data, which discloses the number of live SIP accounts investing in direct and regular plans and their age.
We compared the present (December-end 2021) number of 'less than one-year-old' accounts with that of December-end 2020 to get an idea of investors' preferred plan.
Here's what we derived:
Sharp jump in SIP registrations in regular plan
The 'SIP age' data points towards a massive growth in SIP registrations in regular plans in 2021 compared to 2020. December end data shows that there is a 78% year-on-year rise in 'less than 1-year-old' regular SIP accounts, indicating a sharp jump in new SIP registrations last year.
|
Less than one-year-old live accounts |
||
|
Year |
Direct SIP accounts |
Regular SIP accounts |
|
2021 |
85,51,038 (Rs. 24,247 crore AUM) |
1,25,78,607 (Rs. 96,248 crore) |
|
2020 |
39,81,183 (Rs. 15,993 crore AUM) |
70,72,931 (Rs. 79,881 crore) |
As of 2021 end, there were 1.26 crore regular SIP accounts which were less than one-year-old. The number stood at 71 lakh at the end of 2020.
B-30 locations have registered a better growth as the number of such accounts from these areas rose 85% compared to 72% surge in accounts from T-30 locations.
As of 2021-end, there were 68 lakh such SIP accounts from T-30 locations. Their AUM was Rs. 63,183 crore. The new live accounts from B-30 locations was 57 lakh and the AUM was Rs.33,065 crore as of December 31, 2021.
Please note that the number of ‘one-year-old’ accounts is not the same as total SIP registrations that year. This is because AMFI’s ‘age data’ takes only live accounts into consideration. SIPs which were started and discontinued in the same year do not make it to this data.
'New direct SIP registrations double'
Analysis of 'SIP age' data indicates that SIP account registrations from direct channels more than doubled in 2021. As of 2021 end, there were 85 lakh new live SIP accounts with an AUM of Rs. 24,247 crore. At the same time a year before, such accounts were around 40 lakh with an AUM of Rs. 16,000 crore.
Year wise details of ‘1-year-old’ SIP accounts:
|
Regular T-30 |
Regular B-30 |
|||
|
Year |
Accounts |
AUM |
Accounts |
AUM |
|
2021 |
68,06,648 |
63,183 |
57,71,959 |
33,065 |
|
2020 |
39,58,302 |
52,240 |
31,14,629 |
27,641 |
|
Difference |
28,48,346 |
10,943 |
26,57,330 |
5,424 |
|
%change |
72 |
21 |
85 |
20 |
|
Direct T-30 |
Direct B-30 |
|||
|
Year |
Accounts |
AUM |
Accounts |
AUM |
|
2021 |
43,32,384 |
16,195 |
42,18,654 |
8,052 |
|
2020 |
20,84,851 |
11,069 |
18,96,332 |
4,924 |
|
Difference |
22,47,533 |
5,126 |
23,22,322 |
3,128 |
|
%change |
108 |
46 |
122 |
64 |
*AUM in Rs crore except for percentage
