The average investment value per SIP investor rise to record high

Mutual fund investors using the systematic investment plan (SIP) route are having their moment in the sun as gradual small contributions over the years have grown to a sizeable corpus riding on the market rally and driving a positive impact of notional wealth gain, which typically boosts private consumption and premiumisation for companies.

The average investment value per account of a SIP investor rose to a record high of Rs 1,25,155 in November, data from the Association of Mutual Funds in India (AMFI) show, supported by capital appreciation as the market scaled new peaks and consistent inflows.

The average investment reading of a SIP investor was Rs 91,748 five years ago. The total assets under management linked to SIPs crossed Rs 9 lakh crore for the first time in November. Consequently, the share of SIP AUM to the total mutual fund AUM has doubled in the past five years to reach a record high of 19% during the month.


Sustained incremental SIP account addition coupled with a rising monthly book has led to a 32% annual growth in total SIP AUM to touch Rs 9.3 lakh crore in the last five years, while total SIP account numbers rose at a compounded annual rate of 24% to 77.4 million.

The monthly SIP book has expanded at a compounded annual growth rate of 16.4% to settle at Rs 17,073 crore. Besides, these flows have played a critical role in bringing down volatility in the Indian market when foreign investors pulled out money due to global factors.

In addition, the unabated SIP flows have taken the domestic mutual fund holding in the BSE 200 universe stocks to a record high of 9.2% in November. The share of domestic funds in the BSE 200 universe has risen by more than 300 basis points in the last five years. One basis point is 0.01 percentage point.

A granular examination of the November data also shows that the average ticket size of SIPs dropped to ₹2,294 compared with Rs 3,207 five years ago, while the total SIP accounts surged three-fold. This drop can be atrributed to investors opting for new classes of funds with a lower ticket size, and reaping rich dividends. During the past five years, the large-cap AUM share has dropped by 460 bps over 2019 levels, while the share of small-cap AUM gained by the same proportion.