Monthly SIP collections rise, but average SIP size falls as new investors start small

Large number of new first time investors entering the markets, ease of registering SIPs through online fintech portals has led to an increase in number of SIPs, and monthly collections but reduced the average ticket size per SIP. As per data by AMFI and compiled by Franklin Templeton, average SIP ticket size fell to Rs 2303 per SIP in December 2021 from Rs 3313 in December 2017. However in the same period monthly SIP collections rose 77% to Rs 11,005 crore as compared to Rs 6222 crore in December 2017.

Distributors point out that over the last one year there has been an 41% growth in number of SIPs in to touch 4.91 cr running accounts from 3.47 crore accounts, as many new investors entered the market.

Post demonetization and subsequently the pandemic has led to investors preferring financial savings over physical savings, leading to entry of many new investors.


“Many new investors in the age group of 20-25 years are entering mutual funds through SIPs. Since they are new and just started working, the ticket size is small with many of them starting SIPs of Rs 500 to Rs 1000, which has brought down the average ticket size,” says Vijay Kuppa, Founder, Orowealth, a new age fintech platform for investing. Fintech platforms like groww, paytm money, kuvera, ETmoney have added many new mutual fund investors over the last few years. Investors are also transacting online on fund house websites.

“We have observed an incremental number of SIPs in the last 2-3 years are coming from digital counters,” says Swarup Mohanty, CEO, Mirae Asset Mutual Fund. Distributors also point out that good past returns from equities due to the current rally with the Nifty gaining 125% over the last 22 months is also driving many new investors to start investing through SIPs.

Unlike the physical world where one has to fill a form, write a cheque, transacting digitally to start a SIP happens at the click of the button, which makes it easy for distributors to onboard investors. An SIP helps you to stagger your investments in equity mutual fund schemes over a period and reduces volatility. Many young investors are using it as a tool to accumulate wealth and meet long term goals like buying a house, kids education, retirement and so on. It is easy on the pocket as investors can start with as little as Rs 100 to Rs 1000. There is no penalty for closing an SIP anytime during its tenure and it offers flexibility in choosing date, altering amount or changing a scheme as and when the investor wants to do it.