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Investors bet high on SIPs: MFs garner Rs 672 bn in FY18, up 53% from FY17

The increased interest in SIPs can be attributed to the strong performance of equity schemes and investor education initiated by Amfi and mutual fund houses

Press Trust of India  |  New Delhi 

investment, mutual fund

are preferring SIP option for investing in mutual funds, with the industry garnering around Rs 671.9 billion through this route in 2017-18, an increase of 53 per cent from the preceding fiscal.

In comparison, Rs 439.21 billion was collected through the investment plan in 2016-17, according to the latest update with in India (Amfi).

The increased interest in SIPs (systematic investment plans) can be attributed to the strong performance of equity schemes and investor education initiated by and houses, said.

He further said the new Sebi's announcements of reducing the expense ratio to 5 basis points from 20 basis points along with recent market corrections will create a lucrative environment for investing through the SIP route in the market.

As per the latest data, on an average, the industry added about 0.97 million SIP accounts each month in 2017-18 as against an average of 0.627 million in the previous financial year.

The industry had garnered Rs 71.19 billion last month through SIPs as compared to Rs 43.35 billion collected in March 2017. Moreover, the average SIP size was Rs 3,375 per account last fiscal.

Currently, have about 21.1 million SIP accounts through which investors regularly invest in Indian mutual fund schemes.

SIPs have been the preferred route for to invest in as it helps them reduce market timing risk.

It is an investment vehicle that allows investors to invest in small amount periodically instead of lump sum. The frequency of investment is usually weekly, monthly or quarterly. It is similar to a recurring deposit where investors deposit a small or fixed amount every month.

First Published: Mon, April 16 2018. 17:08 IST