SIP Investment in Mutual Funds: Due to the increasing participation of retail investors, there is a lot of growth in the mutual fund industry of the country. In the financial year 2021-22, the investment coming through Systematic Investment Plan or SIP increased to Rs 1.24 lakh crore. In this way, the investment in SIP has increased by 30 percent in the last financial year as compared to the previous year. This shows that the popularity of SIPs is increasing among retail investors. According to the data of Association of Mutual Funds in India (AMFI), an investment of Rs 96,080 crore came through SIP in 2020-21.
What do experts say
Morningstar India Associate Director Manager-Research Himanshu Srivastava said that the increase in investment through SIPs shows that investor interest in equity funds is increasing. The Asset Under Management (AUM) of the SIP increased to Rs 5.76 lakh crore at the end of March, from Rs 4.28 lakh crore at the end of March 2021. Mutual fund SIP contributions have more than doubled in five years. In the year 2016-17, it was Rs 43,921 crore.
In the last five years, SIP AUM has grown by 30 per cent annually, which is more than double the growth in the asset base of the entire mutual fund industry. At present, there are around 5.39 crore SIP accounts in mutual funds, through which investors regularly invest in mutual fund schemes.