Smart money's new playground: SIPs close to hitting 100 million sweet spot

Based on folio addition data, most of the new SIP accounts are likely in sectoral, smallcap, and midcap funds

The number of active systematic investment plan (SIP) accounts in mutual funds (MFs) is nearing the 100 million milestone, driven by a bull run in the equity market and a rush of new fund offerings (NFOs) that boosted account additions in calendar year (CY) 2024.

In the first eight months of the year, MFs added 19.7 million accounts, compared to 15.1 million for the entirety of CY 2023.

The increasing number of SIP accounts has also contributed to consistent growth in monthly SIP collections. The SIP contribution, which was Rs 17,610 crore in December 2023, rose to