MF sector bets big on SIP to hit Rs 20-trillion AUM mark

Mumbai: Fund houses are betting big on investments through systemic investment plan (SIP) to achieve the magical figure of Rs 20 trillion assets under management (AUM) for the industry by end of the current calendar year.

While some of the fund houses see the growth in SIP coming from B-15 cities, few others said their SIPs are doing very well and hence they are confident of the industry achieving the Rs 20 trillion mark by the year-end.

The AUM reached Rs 17.4 trillion in January, expanding 36.4 per cent from Rs 12.7 trillion a year ago, according to data from the Association of Mutual Funds in India (AMFI). DHFL Pramerica Mutual Fund, with Rs 27,000 crore AUM currently, said its SIP was growing by 35-40% over past nine months. "We have seen our SIP book growing by 35-40% over the past nine months and we have seen lots of participation from B-15 cities," DHFL Pramerica Mutual Fund Chief Executive Suresh Soni said.