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New SIP registrations surged 90% in FY22, says report

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. (Photo: iStock)Premium
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. (Photo: iStock)

  • FY22 was a year of equity and hybrid schemes, which predominantly incorporates equity and both. Average assets under management of equity schemes grew 32% and that of hybrid schemes grew 39% during the fiscal

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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.

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