Systematic Investment Plan (SIP) inflows have surged to a record high in July 2023, indicating a growing investor interest in mutual funds. According to the latest data released by Association of Mutual Funds in India (AMFI), SIP inflows reached a record of Rs 15,242.7 crore during the reviewed month. The number of SIP accounts stood at 6.8 crore for July 2023 compared to 6.65 crore in June 2023.
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One of the key highlights of the AMFI data is the growth in the Assets Under Management (AUM) attributed to mutual fund SIPs. The AUM, which stood at Rs 7.93 lakh crore in the previous month, saw a substantial increase to Rs 8.32 lakh crore in July.
The rise in SIP investments has been attributed to the convenience and disciplined approach they offer to investors. SIPs allow individuals to invest a fixed amount at regular intervals, helping them navigate market volatility while aiming for long-term wealth accumulation.
According to NS Venkatesh, CEO at AMFI, the substantial increase in SIPs is a result of mutual fund houses and AMFI's widespread awareness campaigns, tapping into Bharat's wealth and aspiration to partake in market growth.
"Investors in B30 cities are indirectly investing in stock markets via SIPs in equity mutual funds," he said.
Details of new SIPs registered and discontinued during FY 22-23 are as under : (SIP Count in Lakh)
| Month | Total No. of outstanding SIP Accounts | No. of New SIPs registered | No. of SIPs discontinued/ tenure completed | SIP AUMRs crore | SIP ContributionRs crore |
|---|---|---|---|---|---|
| Apr 23 - Jun 23 | 665.37 | 72.04 | 42.66 | 7,93,609 | 43,211 |
| Jun 23 | 665.37 | 27.78 | 15.26 | 7,93,609 | 14,734 |
| May 23 | 652.85 | 24.70 | 14.19 | 7,52,944 | 14,749 |
| Apr 23 | 642.34 | 19.56 | 13.21 | 7,17,176 | 13,728 |
| Apr 22 -Mar 23 | 635.99 | 251.41 | 143.15 | 6,83,296 | 1,55,972 |
| Apr 21– Mar 22 | 527.73 | 266.36 | 111.17 | 5,76,358 | 1,24,566 |
(Source: AMFI)
Market analysts believe that this surge in SIP inflows is indicative of the evolving mindset of Indian investors. The culture of systematic investing is gaining traction as more individuals recognise the benefits of disciplined investing, even in the face of market uncertainties. The strong AUM growth further emphasises the shift towards SIPs as a preferred choice for many investors looking to build wealth over time.
Financial institutions and fund houses are also stepping up their efforts to educate investors about the advantages of SIPs, highlighting their potential to harness the power of compounding and achieve financial goals over the long term.
First Published: Aug 9, 2023 3:51 PM IST
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