Fintechs add 1.3 million new mutual fund SIPs in November
Groww, AngelOne and PhonePe are emerging as top distributors of mutual fund products, adding lakhs of new systematic investment plans (SIPs) every month. They drew in nearly half the new SIPs opened in November 2023, according to data from asset management companies shared exclusively with ET.
The Association of Mutual Funds of India (AMFI) noted that over 3 million new SIPs were created in November 2023, of which around 1.3 million were opened on fintech platforms, according to industry estimates. Groww opened more than 700,000 new SIPs while more than 200,000 were generated by AngelOne and over 120,000 by PhonePe. Paytm Money, the wealth management subsidiary of Paytm, generated around 76,000 new SIPs in November.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitIndian School of BusinessISB Digital TransformationVisitMITMIT Technology Leadership and InnovationVisit“We have seen significant growth in SIP transactions on our platform over the past two years,” said Ujjwal Jain, CEO of Share.Market, the wealth management arm of PhonePe.
November SIP inflows up 28% YoY
“Our total monthly SIP transactions have almost doubled between December 2022 and 2023,” Jain said. The firm began mutual fund distribution in 2019 but launched the complete range of these products only in mid-2021. It now accounts for “roughly 5% of the overall new SIP registrations in the mutual fund industry”, he added.
To be sure, this growth has come at a time when the Indian equities market is clocking unprecedented expansion. AMFI data shows that contribution towards mutual fund SIPs in November 2023 was at Rs 17,073 crore, up 28% from Rs 13,306 crore a year
