Inflows into mutual fund SIPs continue to spike. These are the 5 key reasons
systematic investment plans (SIPs) of mutual funds have jumped to ₹18,838 crore in Jan 2024, reflecting a jump of 36 percent in just one year’s time. A year prior to this, the corresponding figure for SIP inflow stood at ₹11,517 crore and two years before, inflows into SIPs stood at ₹8,023 crore. Consequently, total SIP assets under management (AUM) have touched ₹10.26 lakh crore, 43 percent in just nine months when it stood at ₹7.17 lakh crore, shows the AMFI data.
At the same time, the number of new SIPs registered hit a milestone of 51,84,057 in January 2024. In fact, the number of SIP accounts was also the highest ever at 7,91,71,394 last month. ALSO READ: Mutual funds: Total SIP inflows in 2023 hit ₹1.83 lakh crore, up 23% over previous year “It's a positive trend but in our view, we are just scratching the surface since the penetration of mutual funds in India is barely 5 percent only.
Most investors have realised that equity is important for wealth creation and SIP is the right tool to invest," says G Pradeepkumar, CEO of Union Asset Management Company. (Source: AMFI) Total AUM of SIP inflow has jumped to ₹10.26 lakh crore, whereas it stood at ₹7.17 lakh crore merely nine months ago. 1. Bull run: A large number of investors have invested during the bull run to make the most of the rally, particularly in equity schemes.
2. Investing discipline: Increasingly, investors have made handsome gains in the recent past, thus incentivising the habit of investing on a regular basis. “Investors understand that mutual funds offer risk management better than direct equity.
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