Latest News

Indians investing more in SIP, Data shows SIP crossed Rs 19,000 crore in February


➡️ Click here to join our Whatsapp Group

In February, the inflow into Systematic Investment Plans (SIP) in India reached an all-time high, crossing Rs 19,000 crore for the first time. The latest data shows that SIP investments stood at Rs 19,187 crore, marking a significant increase from the previous month’s Rs 18,838 crore. This surge in SIP investments is attributed to several factors, including increased awareness about long-term wealth creation, the ease of investing through SIPs, and the overall positive sentiment in the market. Click here to join our whatsapp group to get information on SIP, stocks, etc.

What is SIP?

SIP stands for Systematic Investment Plan. In the context of investing, SIP refers to a method of investing in mutual funds. It is a systematic approach where investors allocate a small pre-determined amount of money at regular intervals, usually monthly, to invest in the market. SIPs help inculcate financial discipline and allow investors to gradually build a corpus in a systematic and planned manner. This approach is popular among investors as it allows them to participate in the market while managing risk better. SIPs are considered a preferred way of investing in stocks and mutual funds, as they provide the opportunity for long-term wealth creation.

Association of Mutual Funds in India (AMFI)

According to the Association of Mutual Funds in India (AMFI), the SIP assets under management (AUM) for February 2024 stood at Rs 10.52 lakh crore. Additionally, the number of new SIP accounts also saw a rise, reaching 8.20 crore compared to 7.91 crore in January 2024.

The significant increase in SIP investments reflects investors’ unwavering commitment to disciplined wealth accumulation. The industry’s net AUM has also reached Rs 54,54,214.13 crore in February, showcasing the growing popularity of SIPs as an investment avenue.

Furthermore, the inflow into equity mutual funds saw a 23% increase to Rs 26,865.78 crore in February. This marks the 36th consecutive month of positive inflows into equity mutual funds since March 2021. Despite concerns raised by the Securities and Exchange Board of India (SEBI) regarding froth in the midcap and smallcap segments, both categories saw robust inflows in February.

In terms of specific categories, the Sectoral/Thematic Funds category witnessed the highest inflows of Rs 11,262.70 crore among the equity asset class. Additionally, five new schemes launched during the month collectively garnered Rs 7,178 crore during their New Fund Offer (NFO) period.

In the fixed income segment, debt funds saw net inflows of Rs 63,809 crore in February, compared to Rs 76,469 crore in January. The positive inflow into debt funds was largely driven by investments of Rs 83,642 crore into the short-term Liquid Fund category. On the other hand, Low Duration Funds saw outflows of Rs 4,100 crore, followed by outflows of Rs 3,610 crore from Floater Funds in February.

The surge in SIP investments and the overall positive inflows into mutual funds reflect the growing confidence of investors in the Indian market. The sustained growth in SIP contributions highlights the increasing awareness among retail investors about the long-term benefits of equity investments and wealth creation opportunities in India’s growth trajectory.

Leave a Reply

Your email address will not be published. Required fields are marked *