Indian Economy News

New SIP registrations surged 90% in FY22: IDFC Mutual Fund Report

  • IBEF
  • July 28, 2022

The number of registrations for new systematic investment plans (SIP) in mutual fund schemes grew nearly 90% to 2.66 crore by the end of the FY22, according to a report by IDFC Mutual Fund.

Small frequent investments are trusted by retail investors, as seen by the report's finding that SIP retention increased from 39% in FY21 to 58% in FY22. In FY21, 1.41 crore SIP accounts were opened, while 0.86 crore accounts were closed or reached maturity. On the other side, 1.11 crore SIP accounts stopped or matured in FY22, while 2.66 crore accounts were opened.

The SIP book climbed from Rs. 9,000 crore (US$ 1.12 billion) per month in March 2021 to over Rs. 12,300 crore (US$ 1.54 billion) in March 2022, a gain of 34%.

Investor demand for SIPs has increased as a result of Indian markets outperforming their international counterparts, as seen by the benchmark Sensex's 17% gain to 58,569 points at the end of FY22.

Additionally, the number of active SIP accounts increased steadily, from over 3 crore in April 2020 to over 5 crore at the end of February 2022.

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