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SIP inflows touch Rs 5,206-cr milestone in August

SIP is considered as a vital constituent in the growth of MF industry

Chandan Kishore Kant 

Mutual funds, MFs
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(MF) through the (SIP) route touched a new high of Rs 5,206 crore in August. A record 700,000 new were also opened during the month, taking the total tally of such accounts to around 16 million. 

According to industry experts, the impressive figure indicates that flows into MFs would sustain at record levels. 

Nearly half of the new accounts prefer the SIP mode over the traditional lump-sum or one-time investment option. During the start of FY18, the number of stood at 13.5 million.

Sundeep Sikka, CEO of Mutual Fund, says, “Investor flows through the SIP route have been growing, which is a positive sign for the industry. High portion of is more important than just a growth in assets. We expect much better growth in SIP figures."

SIP is considered as a vital constituent in the growth of MF industry. The money flowed in through this mode is more consistent and sticky than that through lump-sum In the previous fiscal year, the sector witnessed an overall inflow of Rs 43,921 crore through the SIP route. During the five months of this fiscal year, such flows have reached Rs 23,750 crore, more than half of the last fiscal year.

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First Published: Wed, September 13 2017. 23:43 IST
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