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AMFI data shows the MF industry added 1.08 crore SIPs in FY 2022-23 which is 30% lower than FY 2021-22.
While the industry added 2.51 crore gross SIPs in FY 2022-23, discontinuation/maturity of 1.43 crore SIPs resulted in net additions of 1.08 crore. On the other hand, the industry added 2.66 crore in FY 2021-22 and discontinuation/maturity remained low at 1.11 crore, which kept the net SIP count at 1.55 crore.
Sharing his experience, Bengaluru MFD Srikanth Matrubai of SriKavi Wealth said that many investors have consolidated their SIPs. He said, “Investors having multiple small SIPs now prefer consolidating them to avoid duplication and have the ease of tracking. This could probably be one of the reasons behind SIP discontinuation and the resultant decline in net SIP accounts. Also, I see investors topping up their existing SIPs rather than registering new SIPs.”
Goa MFD Hari Kamat said, “The markets were volatile and investors preferred exploring other asset classes. This was largely true in the case of novice investors who were new to volatility.”
Total number of outstanding SIP accounts
Overall, the total number of live SIP accounts increased by around 21% from 5.28 crore as on March 2022 to 6.36 crore as on March 2023.
Further, scheme-wise analysis shows that with 5.35 crore accounts, the proportion of growth/equity oriented schemes is the largest at 84%, and all other schemes have only a modest share.
