Share of SIPs in total assets of MF industry hits a record high in December

The share of assets below administration (AUM) of the funds linked to the systematic investment plans (SIPs) reached a record 15% of the AUM of the mutual fund (MF) industry in December 2021, the info from the Association of Mutual Funds in India (AMFI) reveals. The SIP AUM grew by 34.6% yearly in the previous 5 years in contrast with the 18% progress in the total MF AUM.

At Rs 5.6 lakh crore, the SIP AUM was almost a quarter of the AUM of fairness MFs and a couple of% of the total market capitalisation of Indian equities. According to industry estimates, almost 90% of SIP inflows are deployed in the fairness funds.

In 2021, the SIP linked funds noticed an influx of Rs 1.1 lakh crore. The SIP month-to-month e-book dimension expanded in every of the eight months to December. In the previous 5 years, the cumulative SIP influx was Rs 4.9 lakh crore, 1.6 occasions increased than the stream of overseas portfolio traders (FPIs). Average ticket dimension of a SIP investor was Rs 2,303 per account and its portfolio worth was about Rs 1.2 lakh on the finish of December 2021.

The fairness MFs had a sturdy influx of Rs 41,906 crore in the December 2021 quarter. Of this, 30% was mopped by new fund choices. Consequently, the retail AUM together with fairness, hybrid and resolution oriented funds, touched Rs 18.3 lakh crore.