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AMFI data shows the MF industry added 27.16 lakh SIPs in the first quarter of the current fiscal. This is 8% lower than the corresponding quarter last year when investors registered 29.49 lakh new SIPs.
Further analysis of AMFI data shows that the industry added 59.50 lakh SIPs. However, due to discontinuation/maturity of 32.34 lakhs SIPs, the net addition came down to 27.16 lakh in April-June 2022.
On the other hand, while the industry added gross SIP accounts of 50.86 lakh, discontinuation remained low at only 21.37 lakh, which kept net SIP accounts number at 29.46 lakh.
Citing the dip to be marginal, Mumbai MFD Vinod Jain of Jain Investment feels that this is due to rising interest rates. He said, “Increase in EMI due to rising interest rates is probably one of the reasons here. However, this is a seasonal decline and the numbers are expected to pick up going forward.”
Pune MFD Vipul Shah of Bigbucks Finserve attributes the dip to recency bias. He explained, “In my experience, recent underperformance and correction in certain market segments discouraged investors to register SIPs.”
Bengaluru MFD Srikanth Matrubai of SriKavi Wealth Advisors added, “Market fall and rising interest rates have directed investors to other asset classes.”
Month-wise SIP numbers Q1, FY 22-23
The industry recorded Rs. 36,425 crore SIP contribution in the last three months. Overall, the SIP AUM stood at Rs. 5.51 lakh crore as on Jun 2022, which formed 15% of the total industry average AUM of Rs. 36.98 lakh crore.
* Count in lakh # Rs. in crore
