10 million in 2016 to 5 million accounts in just a month; MF industry grows in 8 years

At the outset of 2016, the total count of active systematic investment plan (SIP) accounts approximated 10 million. Fast forward eight years, and the mutual fund (MF) sector has witnessed a remarkable surge, adding 5 million accounts within a month. Monthly contributions have soared over sixfold to US$ 2.3 billion (Rs. 18,800 crore), as reported by the Association of Mutual Funds in India (AMFI). During this period, assets under management (AUM) linked to SIP accounts have experienced an astounding 8.6x growth, escalating from US$ 14.5 billion (Rs 1.2 trillion) to US$ 124.1 billion (Rs 10.3 trillion).

This extraordinary expansion underscores a significant shift in investor behavior, characterized by a growing preference for staggered investments, particularly monthly or quarterly, to navigate the inherent volatility in investment, especially in equities. Notably, the SIP avenue predominantly caters to retail investors, with over 90% of the inflows directed towards actively managed equity schemes. Mr. Venkat Nageswar Chalasani, the Chief Executive Officer (CEO) of AMFI, attributed the surge in SIP accounts to an unprecedented 79.2 million in January 2024, along with the milestone of over 5.1 million new registrations, to investors' steadfast commitment to disciplined wealth creation.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.