SIP inflows touch a record in March 2023 and also in FY23
SIP flows set a record in the month of March and once again for the full year FY23 too. SIP flows touched an all-time high level of Rs14,276 crore in March 2023 and for FY23 it touched record levels of Rs155,972 crore. The table below captures the SIP flows month-wise for the last 7 financial years to give you an idea of how the SIPs have grown.
|
Month |
|
SIP Contribution (Rupees in crore) |
|||||
|
|
FY 2022-23 |
FY 2021-22 |
FY 2020-21 |
FY 2019-20 |
FY 2018-19 |
FY 2017-18 |
FY 2016-17 |
|
Total during FY |
1,55,972 |
1,24,566 |
96,080 |
1,00,084 |
92,693 |
67,190 |
43,921 |
|
March |
14,276 |
12,328 |
9,182 |
8,641 |
8,055 |
7,119 |
4,335 |
|
February |
13,686 |
11,438 |
7,528 |
8,513 |
8,095 |
6,425 |
4,050 |
|
January |
13,856 |
11,517 |
8,023 |
8,532 |
8,064 |
6,644 |
4,095 |
|
December |
13,573 |
11,305 |
8,418 |
8,518 |
8,022 |
6,222 |
3,973 |
|
November |
13,306 |
11,005 |
7,302 |
8,273 |
7,985 |
5,893 |
3,884 |
|
October |
13,041 |
10,519 |
7,800 |
8,246 |
7,985 |
5,621 |
3,434 |
|
September |
12,976 |
10,351 |
7,788 |
8,263 |
7,727 |
5,516 |
3,698 |
|
August |
12,693 |
9,923 |
7,792 |
8,231 |
7,658 |
5,206 |
3,497 |
|
July |
12,140 |
9,609 |
7,831 |
8,324 |
7,554 |
4,947 |
3,334 |
|
Jun |
12,276 |
9,156 |
7,917 |
8,122 |
7,554 |
4,744 |
3,310 |
|
May |
12,286 |
8,819 |
8,123 |
8,183 |
7,304 |
4,584 |
3,189 |
|
April |
11,863 |
8,596 |
8,376 |
8,238 |
6,690 |
4,269 |
3,122 |
If you look at the FY23 SIP flows overall, it is nearly 25.2% higher compared to FY22 and 62.3% higher compared to FY21. One can argue that FY21 was a COVID year, but the growth is still quite appreciable. Clearly, it looks like the ghosts of the pandemic have not only been totally exorcised, but the demand for SIPs has also received a fresh impetus in the post-pandemic period.
How intense is the retail participation?
While SIP flows look very exciting to see due to the large numbers it is not a good barometer of the SIP flows in value terms can be enticing, but misleading. The SIP flows do not capture the retail intensity, which is best captured by the growth in SIP folios. Here are the key takeaways when we look at the growth in SIP folios. Incidentally, SIP folios refer to MF accounts unique to an AMC.
How did the SIP folio story look like in March 2023? The number of SIP folios increased from 628.26 lakhs in February 2023 to 635.99 lakhs in March 2023. That is monthly addition of 7.73 lakh SIP folios or 1.23%. Remember, these are gross accretions and not net accretion.
Let us also turn to the SIP AUMs on a yoy basis? Between March 2022 and March 2023, SIP AUM increased from Rs576,358 crore to Rs683,296 crore; a growth of 18.6%. Despite solid folio growth, the SIP AUM growth has faced some challenges due to steady SIP closures.
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