SIP inflows cross Rs. 16,000 crore mark for the first time
14 Oct 2023 13:42:10
New Delhi, Oct 14: The Systematic Investment Plan ( SIP ) inflows in September 2023 reached an all-time high of Rs 16,042 crore, marking a notable increase from the previous month's Rs 15,814 crore.
This growth can be attributed to several key factors. It was supported by a strong stock market in the first half of September as well as domestic retail investors continued to put money in equities through the mutual fund route, data released by industry trade body AMFI showed.
The number of SIP accounts hit an unprecedented high, reaching 7.12 crore in September, compared to 6.9 crore in August 2023.
In early September, the sensex had rallied for 11 consecutive sessions, hitting all-time highs on several of those despite volatile global markets. The Nifty, too, had hit the 20,000 mark for the first time before entering a corrective phase in the later half of the month.
AMFI data showed that while net flows into each of the small and mid-cap funds were positive, at Rs 2,678 crore and Rs 2,001 crore respectively, large-cap funds showed a minor net outflow figure of Rs 111 crore. Among the equity funds, thematic funds, however, showed the strongest flows with the net at Rs 3,147 crore.
What is SIP?
Systematic Investment Plan or SIP as it is commonly known, is an investment plan (methodology) offered by Mutual Funds wherein one could invest a fixed amount in a mutual fund Scheme periodically at fixed intervals - say once a month instead of making a lump-sum investment. The SIP installment amount could be as small as ₹ 500 per month. SIP is similar to a recurring deposit where you deposit a small /fixed amount every month.
SIP is a very convenient method of investing in mutual funds through standing instructions to debit your bank account every month, without the hassle of having to write out a cheque each time.
SIP has been gaining popularity among Indian MF investors, as it helps in Rupee Cost Averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market.