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

Mutual fund (MF) investments through the systematic investment plan (SIP) route touched a new high of Rs 5,206 crore in August. A record 700,000 new SIP accounts 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 SIP accounts stood at 13.5 million.

Sundeep Sikka, CEO of Reliance Nippon Mutual Fund, says, “Investor flows through the SIP route have been growing, which is a positive sign for the industry. High portion of SIPs 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 investments. 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.