SIPs turn into gulps: 2024 begins with a bang

economictimes.indiatimes.com:

Association of Mutual Funds in India.

Gross addition of accounts was also the highest on record at 5.1 million last month, while new SIP account to closure ratio — a measure to gauge how many SIPs accounts opened for one closed — was the best in 25 months at 2.18. The monthly SIP book at Rs 18,872 cr was 7% higher from Dec, the fastest sequential growth in 21 months

Assets under management of SIP-linked funds rose to Rs 10.26 lakh crore in January 2024, crossing the psychological milestone of Rs 10 lakh crore ($123 billion) for the first time, show the data. SIPs accounted for 19.5% of total mutual fund AUM at the end of last month. This implies nearly one-fifth of India’s total AUM is contributed by SIP-linked funds, which are presumed to be stickier than lumpsum investments. The share of SIP-linked funds to total mutual fund AUM nearly doubled in five years, with the SIP book growing at 33.78% annually, compared with 17.67% by the wider mutual fund industry. Of the total mutual fund industry AUM of Rs 52.74 lakh crore at the end of January, equity schemes accounted for nearly 43%, followed by debt at 26%, passive scheme (index & ETF) at 16% and hybrid at 13%, with the balance in other schemes

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The ticket size of monthly SIP investment is growing with the rising pace of net account addition. In January this was Rs 2,379 per account — the highest in 34 months — suggesting that new customers are making higher