The trend towards investing in mutual funds is continuously increasing. According to data from industry body ‘Association of Mutual Funds in India’ (Amfi), investment in mutual funds through systematic investment plans (SIP) increased by 28 percent year-on-year to a record Rs 2 lakh crore in the financial year 2023-24. . According to Bhasha news, mutual fund investment through SIP in the financial year 2022-23 was Rs 1.56 lakh crore. This amount was Rs 1.24 lakh in the year 2021-22 and Rs 96,080 crore in 2020-2021.
More than four times increase in mutual fund contributions through SIP
Amfi data shows that mutual fund contributions from SIP have seen a growth of more than four times in the last seven years. In the financial year 2016-17, this amount was Rs 43,921 crore. Fund investment through SIP grew by 35 per cent to an all-time high of Rs 19,270 crore in the month of March. In March 2023, this figure was Rs 14,276 crore. SIP contributions have been more than Rs 19,000 crore in two consecutive months of February and March this year. This reflects a trend among investors towards a more disciplined investment strategy.
Number of SIP accounts to reach record level of 8.4 crore in 2024
Karthik Jonagadala, small-case manager and founder of Quantus Research, said investors gave more importance to equities, driven by strong performance last year. This shows that investors are regularly evaluating their portfolios and making changes accordingly. Industry experts believe that an upbeat economic outlook along with increasing market participation by retail investors also helped in increasing SIP flows. Investors continue to have confidence in mutual funds. This is also reflected in the number of SIP accounts reaching a record high of 8.4 crore in March 2024. Assets under management from SIPs also increased to Rs 10.71 lakh crore in March.
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