Investors bet big on SIPs; inflows at ₹67,000 crore in Apr-Oct FY22

PTI | | | Updated on: Nov 21, 2021
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SIPs' assets under management were at ₹5.53 lakh cr at the end of October

Inflows in the mutual fund industry through systematic investment plans or SIPs reached close to ₹67,000 crore in the first seven months of the ongoing fiscal, suggesting growing popularity of the route for investment among retail investors.

This comes following an inflow of ₹96,080 crore through the route in 2020-21, data with the Association of Mutual Funds in India (Amfi) showed.

Moreover, mutual fund SIP contribution has seen more than two-fold rise during the last five years. It was at ₹43,921 crore during 2016-17.

Also, the monthly collection through SIP surged to an all-time high of ₹10,519 crore in October, higher than ₹10,351 crore in September.

Further, SIPs' assets under management (AUM) climbed to ₹5.53 lakh crore at the end of October from ₹4.28 lakh crore in March-end.

Over the past five years, SIP AUM has grown 30 per cent annually, twice as fast as the growth in the overall mutual fund industry's assets base.

The number of new SIPs registered was 23.83 lakh in October. Total registrations reached to 1.5 crore in the first seven months (April-October) of the current fiscal 2021-22. This was way higher than the 1.41 crore new SIP registrations in the entire preceding financial year.

Currently, mutual funds have about 4.64 crore SIP accounts through which investors regularly invest in mutual fund schemes.

Popular investment means

"Staggered investment approach (via SIP or STP) in equity markets seems the ultimate solution to ride the wave of uncertainty as corrections would bring down the average cost of your total investments or in case the bull run continues, investor would not lose out on opportunity cost," said Akshat Garg, Manager, Research at Investica, platform for investing in mutual funds.

SIP is an investment methodology offered by mutual funds wherein an individual saver can invest a fixed amount in a chosen scheme periodically at fixed intervals -- say once a month, instead of making a lump-sum investment.

The SIP instalment amount can be as small as ₹500 per month.

According to Amfi, SIPs have been gaining popularity among Indian savers, as it helps in rupee cost averaging and investing in a disciplined manner without worrying about market volatility or timing the market.

The 45-player mutual fund industry mainly depends on SIPs for inflows, with equity mutual funds attracting ₹5,215 crore in October, making it the eighth consecutive monthly infusion.

However, the quantum of net inflows dropped from ₹8,677 crore logged in September.

Harshad Chetanwala, co-founder,, said subscriptions in equity funds were lower compared to September as markets were a bit volatile in October and investors may have followed a wait and watch or staggered investing approach which is better in current market conditions.

"At the same time, there is a possibility that some of the outflows from these funds would have gone back to International Funds and Balanced Funds launched during recent times," he added.

The debt segment saw net inflows to the tune of ₹12,984 crore last month, after seeing net withdrawal of ₹63,910 crore in September.

Published on November 21, 2021

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