Belying ‘froth fears’, SIP flows rise, to hit a new high in FY24

Notwithstanding all the talk of froth and bubbles in the market, inflows through systematic investment plans (SIP) are set to hit a record high this fiscal.

SIP inflows were up 15 per cent in the last 11 months at ₹1.80lakh crore against ₹1.56lakh crore logged in the same period of FY23.

With the exception of June, SIP inflows have consistently increased every month to a record high of ₹19,187 crore in February.

SIPs continue to remain the key investment mode in MF equity schemes with inflows through SIP at ₹38,025 crore in the last two months, accounting for 78 per cent of the overall equity schemes inflow of ₹48,645 crore. The num

SIPs remain dominant in MF equity schemes, comprising 78% of the ₹48,645cr inflow over the last two months, totalling ₹38,025 cr

ber of outstanding SIP accounts increased 29 per cent as of last monthend to 8.20 crore against 6.36 crore as of FY23 end. The new accounts opened so far in this fiscal were up 53 per cent at 3.85 crore against 2.51 crore logged in the last fiscal. However, the discontinuation of SIPs also increased 40 per cent to 2.01 crore as the high market valuation remained a major concern among investors.

Bellwether Sensex has rallied 19 per cent to 72,500 points against 61,112 points in March on expectations of strong economic growth despite uncertainties in the global markets.

RETAIL INVESTORS

Ashwini Kumar, Head (Market Data), ICRA Analytics, said the MF industry has seen a surge in retail participation, with individual investors accounting for over 60 per cent of the total AUM.

The increasing retail participation is also reflected in the SIP numbers, with the total number of accounts increasing to 8.20 crore last month, and the amount collected through SIP hitting ₹19,187 crore.

Manish Mehta, National Head (Sales, Marketing & Digital Business), Kotak Mahindra AMC, said firsttime investors continue to use the SIP route.