SIP investments in equity MFs jump 35 per cent

Investors are taking the SIP (systematic investment plan) route to equities in a big way. The monthly investments through SIP route in equity mutual funds (MFs) has jumped about 35 per cent in value terms so far in 2016-17 (till January). The monthly SIP value has doubled in the last two years and stood at Rs 3,663 crore for January.

Incidentally, the overall SIP count crossed the 1 crore mark in August last year. It touched 1.23 crore in December, data with the Association of Mutual Funds in India (AMFI) showed. SIPs are almost entirely only in equity schemes. The fixed income segment contributes only about 5 per cent in volume terms and about 2 per cent in value terms to overall SIPs.

SIP registrations have been on a steady upswing in the last one year. There has been a 40 per cent growth in new SIP registrations since March last year with a record 5.46 lakh registrations done in November. In all, about 50.3 lakh new SIPs have been registered between April and January or an average of 5.03 lakh every month, data sourced from CAMS MFDex, which represents about 93 per cent of the MF industry, showed.


SIPs are considered a disciplined form of investing where an investor commits the specified amount over a fixed period of time. SIPs help investors navigate volatile markets in a better way. Financial advisors usually suggest SIPs for average investors as it is considered the best tool for creating long-term wealth.

“People have realised that SIPs are the best way to ride the volatility in equity markets,” says Himanshu Vyapak, deputy CEO, Reliance Nippon Life Asset Management. “The confidence is going up as SIP investments have given good returns,” he says.

Raghav Iyengar, executive vice president, ICICI Prudential MF says, “Even college students have started investing through SIPs.” SIPs are more popular with equities as investors can start these plans for as low as Rs 500 per month.

SIPs also continue to be a key contributor of the MF industry’s assets. The total assets under SIPs amounted to Rs 1.27 lakh crore or 7.4 per cent of the assets under management (AUM) of the MF industry. The total AUM of the MF industry touched a record high of Rs 17.37 lakh crore during January on the back of strong inflows into equity, income and money market schemes.