Systematic investment plans, or, SIPs, continue to remain the popular channel of investing in mutual funds for retail investors.
Over the last four years, investments through SIPs has risen consistently. The industry collected Rs 43,921 crore through SIPs in FY17. In FY18, SIP inflows jumped by 53% to 67,190 crore. The growth trajectory continued with collections of Rs 92,693 crore in FY19. In FY20, SIP inflows crossed Rs 1 lakh crore mark, though the growth in assets slowed down to 8%.
Reflecting this trend, SIP accounts have grown from 1.23 crore in December 2016 to 3.14 crore in April 2020. Similarly, SIP assets have increased from Rs 1.27 lakh crore to Rs 2.75 lakh crore during the same period.
A large chunk of SIP assets (Rs 2.10 lakh crore or 88%) of the total Rs 2.39 lakh crore SIP AUM is under regular plans as on March 2020.
In April 2020, investments through SIPs were at Rs 8,376 crore.
