do you know When was Systematic Investment Plan (SIP) started in India? It is believed that the concept of SIP was first introduced in India in the early 1990s. However, the ‘Mutual Fund Sahi Hai’ campaign has made SIP and mutual funds popular in the country. Let us tell you that data available from the Association of Mutual Funds in India (AMFI) has shown that investment through SIP has increased from Rs 3,122 crore in 2016 to Rs 19,187 crore by February 2024.
SIP accounts increased more than 11 times in 9 years
According to Amfi data, there are around 8.20 crore SIP accounts in mutual funds today, through which investors invest regularly. At the end of March 2015, the number of SIP accounts was only 73 lakh. That means the number of SIP accounts has increased more than 11 times in the last 9 years. The total assets under management (AUM) of the Indian mutual fund industry is expected to cross the Rs 50 trillion mark in December 2023.
That’s why the mutual fund industry grew rapidly
According to industry experts, the boom in the stock market and increasing participation of retail investors have helped in increasing investment in the mutual fund industry through the systematic investment route. Data available with AMFI also shows that annual contributions through SIP have also seen a steady increase.
From Rs 43,921 crore in 2016-17, the annual SIP book has grown to Rs 1,79,948 crore by February in FY 2023-24.
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