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Recent AMFI data shows that the number of live SIP accounts in liquid funds/overnight funds has increased substantially in the last one year. The category has witnessed 71% growth to reach 8.02 lakh live SIP accounts. Overall, these short term debt funds added over 3.32 lakh SIP accounts during 2022.
This indicates that many Indians have invested in mutual funds to create an emergency corpus.
In fact, a recent survey by Cafemutual shows that creating an emergency fund is the top financial priority for close to 72% of investors whereas children’s education is the key goal for 69% of respondents, followed by retirement planning (66%) and children’s marriage (64%).
SIPs in index funds has also gained traction last year with 57% growth or addition of 6.60 lakh new SIP accounts.
In absolute terms, pure equity funds which include ELSS continue to be investors’ favourite. Pure equity funds account for 85% of the total live SIP accounts. The category has witnessed 25% growth by adding over 1.01 crore new SIP accounts in 2022. Currently, pure equity funds have 5.18 crore live SIP accounts as on December 2022.
Overall, the total number of live SIP accounts has increased by 25%. The count went up from 4.91 crore as on December 31, 2021 to 6.12 crore as on December 31, 2022.
In terms of SIP AUM, the industry has witnessed 19% growth in SIP AUM. The SIP AUM increased from Rs. 5.65 lakh crore as on December 31, 2021 to Rs. 6.75 lakh crore as on December 31, 2022.
As on December 31, 2022, growth/equity oriented schemes contributed a lion share of 86% to the total AUM. Hybrid schemes formed the second highest share of 8%. Solution-oriented and index funds were the next highest contributors with close to 2% share each.
