Of the 1.09 crore SIP accounts, 56 lakh or 52% SIPs have been active for more than five years, shows AMFI data.
There is some good news for the mutual fund industry. Over half of SIP accounts have been active for more than five years, shows a note sent to fund houses by AMFI.
Of the 1.09 crore SIP accounts as on August 2016, nearly 56 lakh or 52% SIPs are active for more than five years.
Experts attributed this to increased awareness about mutual funds and good fund performance.
Nimesh Shah, MD & CEO, ICICI Prudential MF is of the view that increased awareness about the benefits of long term investments in equity funds through SIPs has helped industry achieve this milestone. He said, “Awareness about SIPs and mutual funds is much more than it was five years ago. The credit goes to media and AMCs who have created awareness about mutual funds.”
Swarup Mohanty, CEO, Mirae Asset believes that the investment horizon of people has increased because advisers are asking clients to invest for meeting long term goals. He says that superior fund performance has also encouraged investors to stay put. He says that a majority of these active SIPs have been channelized by IFAs.
Age-wise analysis of SIP Accounts as on 31-Aug-16
|
SIP Accounts continuing for |
No. of SIP Accounts |
% to Total |
|
> 5 years |
56,07,856 |
51.5 |
|
> 4 years up to 5 years |
7,70,496 |
7.07 |
|
> 3 years up to 4 years |
6,02,122 |
5.53 |
|
> 2 years up to 3 years |
9,27,944 |
8.51 |
|
> 1 year up to 2 years |
12,75,034 |
11.7 |
|
Less than < 1 year |
17,14,449 |
15.7 |
|
Total |
1,08,97,901 |
100 |
Source: AMFI
In terms of monthly inflows, the total amount collected through SIPs has increased to Rs. 3,500 crore (Rs.333 crore under direct plans and Rs. 3,164 under regular plan) as on August 2016. In July 2016, the industry got gross monthly inflows of 3,350 crore from SIPs.
Interestingly, the total AUM of SIP stood at Rs. 1.25 lakh crore as on August, which is around 8% of the overall AUM of the mutual fund industry.
While the industry has added 5.74 lakh new SIP accounts in August, 3.29 lakh accounts were discontinued or matured during the same period. Overall, the industry has witnessed net addition of 2.45 lakh SIPs in August.
Currently, the industry has over 1 crore SIPs in regular plans and 8.50 lakh SIPs in direct plans. The AUM of SIPs collected under regular plan is Rs.1.20 lakh crore whereas the AUM of SIPs collected through direct plans stood at Rs. 8,000 crore.
