New investors are joining the SIP bandwagon. Are you a part of it?

resr 5paisa Research Team

Last Updated: 29th October 2021 - 04:16 pm

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SIP through the investment route has crossed Rs 10,000 mark for the first time in September 2021.

One of the most convenient ways of investing in a mutual fund is through a systematic investment plan or SIP as it is commonly known. It’s an investment plan wherein you could invest a fixed amount in a mutual fund scheme at a defined frequency for example every month, instead of making a lump-sum investment. SIP is more like a recurring deposit where you deposit a small amount every month in a bank. It gives an investor the benefit of rupee cost averaging.

Analysis of the data shows that more and more investors are opting for the SIP route of investment rather than the lumpsum investment. Total inflows to equity inflows in September 2021 remained at Rs 8677 crore, while investment through the SIP route came at Rs 10351 crore. This shows that there has been net redemption from lumpsum investors.

The table shows the monthly inflows and number of SIP accounts for the current financial year. 

This is the table code -

Month  

Total No. of outstanding SIP Accounts  

No. of New SIPs registered  

No. of SIPs discontinued/ tenure completed  

SIP AUM   

SIP Contribution  

₹ crore  

 ₹ crore  

Sep-21  

448.98  

26.8  

10.26  

5,44,976  

10,351  

Aug-21  

432.44  

24.92  

9.75  

5,26,883  

9,923  

Jul 21  

417.27  

23.79  

8.55  

5,03,597  

9,609  

Jun-21  

402.03  

21.3  

7.62  

4,83,964  

9,156  

May 21  

388.36  

15.48  

6.66  

4,67,366  

8,819  

Apr-21  

 379.54  

 14.08  

 7.08  

4,34,742  

8,596  

Source: AMFI.

The table clearly shows the continuous rise of SIP investors. It has increased from Rs 8596 crore at the start of the current year to Rs 10351 crore by the end of September 2021. This shows an increase of 20% in last six months. SIP AUM has increased by more than 25% in the same period.  The best part is the number of SIP accounts has also seen a continuous increase, which means more and more new investors are joining the SIP bandwagon.

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