The Rs 23-lakh-crore mutual fund (MF) industry is going through some structural changes. Increasingly, many are investing in MF schemes through systematic investment plans (SIPs).
So far this financial year, a record-breaking 4.5 million new SIP accounts have been added, taking the total tally to 18 million in the end November. The quantum of monthly flows through this mode is also on the rise, making historical highs every month.
In 2017, the SIP monthly inflows have grown 48 per cent, from Rs 3,973 crore in December 2016 to Rs 5,893 crore in November 2017.
The deluge of SIP inflows can also be gauged from the fact that in FY18 , the cumulative SIP inflows are Rs 40,780 crore, against about Rs 43,921 crore the industry got during the last financial year. At the current pace, SIP inflows for the current financial year could be as much as Rs 65,000 crore.
For the industry perspective, SIP inflows are always preferred as they bring sticky money, which doesn’t leave during volatile times.