SIP account additions hit new high in December 2023
SIP registrations hit a record four million during the month, according to data from the Association of Mutual Fund in India (AMFI). It was 2.2 times that of the monthly average for the past five years.
Total SIP account tally reached 76.4 million at the end of December.
The benchmark indices gained around 8% in December alone following renewed interest of foreign portfolio investors (FPIs) and sustained flows form domestic investors. That took the calendar year gain to over 20%.
This has prompted more retail investors to opt for equity investments, and SIP has emerged as a preferred route.
Net SIP account registration was at a new high of 19.5 lakh (nearly two million) in December 2023 compared with the five-year monthly average of 14 lakh (1.4 million). In the last five years, SIP investors have poured in a cumulative 6.4 lakh crore (about $80 billion) in the market.
The gross new SIP registration grew by 41% annually in the past five years, while the net SIP accounts rose by 25%.
The combination of stellar SIP registrations and 16% annual growth in the SIP monthly book helped the assets under management (AUM) of the SIP schemes to grow by 32% annually during the period. This compares with 14% annual return of the benchmark indices.
The average portfolio value of SIP investors reached a record ₹1.3 lakh at the end of December 2023.
What further validates the growing stickiness of SIP investors is the expanding ticket size amid a rising equity market. The average ticket size of the SIP investment touched a 21-month high of ₹2,306 per SIP account in December compared with ₹2,216 a year ago.
