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The number of individual MFDs who register more than 100 SIPs every month has tripled in FY 2022 as mutual funds added a record number of new investors in the previous financial year.
A report by IDFC MF shows that in FY 2022, 188 individual MFDs (referred to as MFDs from here on) registered more than 100 SIPs every month. The figure is almost three times higher than the count in FY 2021.
MFD count has swelled in the 'over 50 monthly SIP registrations' and 'over 25 monthly SIP registrations' brackets as well. As of March-end 2022, there were 668 MFDs who registered more than 50 SIPs every month on an average compared to 242 a year ago. During the same period, the number of MFDs registering over 25 SIPs every month went up to 2,158 from 784 in FY 2021.
Please note that the report is based on MFDex data by CAMS and captures only around 90% of the industry data.
Source: IDFC report based on MFDex data by CAMS
Top MFDs said the extended rally in the equity markets made it easier for MFDs to attract new clients. The period was marked by a whopping rise in sales of equity funds. According to AMFI data (as cited by the report), gross equity MF sales went up 84% to Rs. 4.01 lakh crore from Rs. 2.17 lakh crore in FY 2021. MFDs recorded a 74% jump in gross equity MF sales at Rs. 1.35 lakh crore from Rs. 77,554 crore in the previous financial year.
Source: AMFI | Data as on March 2022 | Numbers are in Rs crore
"FY 2021 was marked by a phenomenal rise in investor interest in mutual funds. The rising equity markets and ballooning returns ensured that a lot of new investors as well as existing clients started new SIPs," said Rajkot MFD Ravi Kalariya of Investment Plus.
"This surge in SIP count is a result of increasing awareness and rising trust in mutual funds," said Anand MFD Nikhil Vasudev Thakkar.
Sirshendu Basu, Head – Products, IDFC AMC, said that the data indicates that more and more investors are looking at SIPs as a tool to benefit from the growth prospects in the Indian markets.
"In FY 2022, it was heartening to see the 90% increase in new SIP registrations. During the period, the monthly SIP book increased from Rs. 9,000 crore to over Rs. 12,300 crore, a growth of 34%. This means that more investors are continuing with their SIPs to benefit from the growth prospects of the Indian markets," Basu said.
