As indices scale new highs, SIP investments are on a roll

The assets under management (AUM) linked to the systematic investment plan (SIP) rose to a record high of Rs 4 lakh crore in December due to capital appreciation and a sharp bounce back in SIP inflows. It increased at a faster rate of 25.5% in 2020 compared with the 16.8% growth in the total AUM of the mutual funds, according to the data from the Association of Mutual Funds in India (AMFI).

The total mutual fund AUM was Rs 31 lakh crore at the end of December. Of this, 45% belonged to the debt schemes, 29% to the equity schemes, 10% to hybrid funds, 5% to the closed ended schemes and remaining to the others.

Given the faster rise in the SIP AUM, its share in the total mutual fund AUM rose to a record level of 12.8% in December compared with the four-year average of 10%.

The SIP AUM has grown by 32.9% annually in the past four years led by 29.6% growth in the SIP accounts and 20.6% growth in the SIP monthly book. The SIP book rose by 15.2% Rs 8,418 crore in December 2020 from the previous month. It was the fastest pace since 2016 when the data was first made available.

In December 2020, 14.2 lakh new SIPaccounts were added and 7.8 lakh accounts were closed taking the net new addition to 6.6 lakh accounts, which is the highest in 31 months.

Average portfolio value of the SIP account holder was Rs 1.1 lakh at end of December 2020, the highest in 53 months.

amfi etET Online

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