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NEW DELHI: The number of registrations for new systematic investment plans (SIP) in mutual fund schemes surged nearly 90% to 2.66 crore by the end of the financial year 2022, according to a report by IDFC Mutual Fund.
Highlighting how retail investors trust small regular investments, the report showed that SIP retention improved from 39% in FY21 to 58% in FY22. The data showed that 1.41 crore SIP accounts were opened in FY2020-21 while 0.86 crore accounts ceased or matured.
On the other hand, 2.66 crore accounts were opened in FY2021-22 and 1.11 crore SIP accounts ceased or matured.
The IDFC MF report also highlighted that SIP book increased from ₹9,000 crore per month in March 2021 to over ₹12,300 crore in March 2022, a jump of 34%.
Investor preference for SIPs has come amid Indian markets performing better among global peers, with the benchmark Sensex ending FY22 with an 17% jump to 58,569 points.
There has been also a steady rise in live SIP accounts from over 3 crore at the of April 2020 to above 5 crore at the end of February 2022.
The report highlighted that in the last financial year when markets put up a decent show, gross sales of the industry was more focused towards equity-oriented schemes. The data showed that gross sales in debt schemes went down by 12%. Further, 13% of the total equity gross sales was through new fund offers (NFOs) in FY22 compared with 8% in the previous fiscal.
Another 25% of total equity gross sales came through SIP investments.
Specifically, debt schemes witnessed huge outflow of ₹1.67 lakh crore in FY22.
The report said FY22 was a year of equity and hybrid schemes, which predominantly incorporates equity and both. Average assets under management (AAUM) of equity schemes grew 32% and that of hybrid schemes grew 39% during the fiscal.
Further, index funds witnessed a spurt in AAUM with the launch of multiple fixed income index funds. In fact, debt schemes was the only category with negative net sales during the year.
