Systematic Investment Plan (SIP) inflows soared to a record high of ₹18,838 crores, marking the seventh consecutive month with inflows surpassing ₹15,000 crores and the twenty-ninth consecutive month with inflows exceeding ₹10,000 crores in January 2024, according to an insights report by Geojit.
This robust performance underscores the sustained confidence of investors in systematic investment plans, reflecting a consistent trend of substantial inflows into the market.
What is SIP investment?
SIP is a methodical strategy for investing that entails setting aside a modest, predetermined sum of money for market investment at consistent intervals, typically on a monthly basis.
The SIP method stands out as the favored approach for investing in stocks and Mutual Funds due to its ability to facilitate market participation while enhancing risk management capabilities.
The report further revealed that the number of SIP accounts soared to a record high of 7.92 crore in January this year, marking a substantial increase year-over-year.
Active SIP accounts witnessed a notable uptick, rising by approximately 1.7 crore compared to the previous year, reflecting a significant surge of 27.4%. This surge underscores the growing popularity and adoption of SIP among investors.
The average size of a SIP stood at an estimated ₹2,379 per SIP, reflecting a robust year-on-year growth of 6.7%, according to data by the Geojit report.
January 2024 witnessed a remarkable surge in new SIP registrations, reaching a record-breaking 51.8 lakhs, marking an impressive 47% increase from the three-month average.
Conversely, SIP discontinuations totaled 23.8 lakhs, soaring by 29.6% from the three-month average. This resulted in a staggering net SIP addition of 28.1 lakhs, setting an all-time high and surging by an exceptional 65.9% from the three-month average, underscoring the growing traction and investor confidence in SIPs.
The SIP segment also witnessed a remarkable milestone as its Assets Under Management (AUM) surged past the unprecedented mark of ₹10 lakh crore for the first time, reaching ₹10.3 lakh crore, showcasing a notable year-on-year increase of 52.4% in January 2024.
This achievement underscores the growing prominence of SIPs in the investment landscape. Notably, SIPs now represent 19.5% of the total AUM, reflecting a substantial share of investor portfolios.
Additionally, within the open-ended Equity-oriented AUM category, SIPs command an even more significant presence, comprising 35.0% of the total AUM, further highlighting their pivotal role in shaping investment strategies.
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Published: 16 Feb 2024, 11:00 PM IST
