Systematic investment plan inflows continue to gain momentum

The industry collected Rs 8,022 crore through SIPs in December 2018.
By Morningstar |  14-01-19 | 

Systematic investment plan, or SIP, continues to be most preferred route for investors to participate in equities. Inflows through SIPs increased to Rs 8,022 crore in December 2018 as compared to Rs 6,222 crore in December 2017, shows Association of Mutual Funds in India data. In FY 17-18, average monthly SIP contribution stood at Rs 5,599 crore which has increased to Rs 7,182 crore during FY 2018-19 so far.

While the overall net inflows in equities decreased in December 2018 due to volatile markets, SIP inflows continued to gain momentum. The mutual fund industry added about 9.46 lakh SIP accounts each month on an average during FY 2018-19, with an average SIP size of about Rs 3,150 per SIP account. In FY17-18, inflows from SIPs stood at Rs 67,190 crore which increased to Rs 68,479 during FY18-19 so far.  As a result, SIP accounts or folios have reached 2.54 crore in December 2018.

Month-wise amount collected from FY 2016-17

Despite choppy markets, the industry has seen steady inflows as investors are taking every opportunity to buy in the dips. This is a visible shift in investors behavior who used to hit the panic button by stopping their SIPs during volatile markets a few years back. The investor education drive unleashed by AMFI, fund houses and distributors has played a key role in reaching this milestone.

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