There has been a gradual increase in SIP (Systematic Investment Plan) accounts in October, total number of SIP Accounts at present stands at 1.73 Crore i.e, 17.3 Million. According to AMFI data, An inflow of ₹ 34,887 crore came into the mutual funds via SIPs in the first seven months of 2017-18.
There has been a 47% jump in the inflows from SIP since the last financial year. During FY 16-17, a total amount of Rs 43,921 crore was collected through SIPs. An amount of Rs 23,584 crore was collected via SIP Investment during the first seven months of FY 16-17.
AMFI data shows that the mutual fund industry had added about 8.86 lakh SIP accounts each month on an average during the FY 2017-18, with an average SIP size of about Rs 3,250 per SIP account.
In the past few months on a average around 8,80,000 SIP accounts were added every month with an average size of about Rs 3,300 per account, According to Association of Mutual Funds in India. The average SIP size for the same period last year was about Rs 2,200 per account.
The statistics are from the new investors only. About 55-60 per cent of new folios are being created by new investors while the rest are existing ones.
The AUM to GDP ratio is more distorted for Indian Equity Funds at 4 per cent compared with the global average of 29 per cent.
Why SIP ?
SIP is a convenient way of investing in mutual funds. Many investors have been investing in mutual funds through SIP mode of investment. It gives various benefits such as Rupee Cost Averaging and safety from the volatility of the market. One can invest in SIP with a minimal amount of ₹ 500/-.