Mutual funds: SIP inflows on rise, shows AMFI data; why retail investors find systematic investment plans appealing

SIP inflows have been rising month after month. The figure spiked from 18,838 crore in January this year to 21,262 crore in June, an increase of 12.8 per cent in six months.

Vimal Chander Joshi
First Published9 Jul 2024, 08:47 PM IST
A systematic investment plan is a great tool to invest in a staggered manner, allowing investors to invest small amounts periodically.
A systematic investment plan is a great tool to invest in a staggered manner, allowing investors to invest small amounts periodically.

Inflows into mutual fund systematic investment plans (SIPs) hit an all-time high of 21,262.22 crore in June 2024, according to the data released on Tuesday by the Association of Mutual Funds in India (AMFI).

Inflows into SIPs have been rising continuously for the past 12 months. As the table below shows, inflows spiked from 18,838 crore in January 2024 to 21,262 crore, an increase of 12.8 per cent in six months.

If one compares the latest figure with the corresponding data from one year ago, one realises that these regular inflows have increased 44 per cent from 14,734 crore in June last year to 21,262 crore in the previous month.

One might wonder how SIPs have become so popular among retail investors. Wealth advisors argue that the phenomenon is the result of long-term awareness campaigns and investor education carried out by industry players.

“Investing via SIPs enables the investor to make the most of rupee cost averaging. So, when the market is volatile or going through a bull phase, it is advisable to invest in a staggered manner. This can prevent you from entering the market at a high valuation,” says Sridharan Sundaram, founder of Wealth Ladder Direct.

Month (2024)                                            Inflows ( crore) 
Jan                                                               18,838
Feb                                                              19,187
March                                                         19,271
April                                                           20,371
May                20,904
June                                                         21,262

(Source: AMFI)

“Since retail investors are not expected to know what is the right time to enter the markets, the highly recommended route is to invest in small doses i.e., SIPs. This has caught up retail investors, and rightly so,” says Deepak Aggarwal, a Delhi-based chartered accountant and financial advisor.

Preeti Zende, a Sebi-registered financial advisor and founder of Apna Dhan Financial Services, echoes the same sentiments.

“A systematic investment plan is a great tool to invest in a staggered manner, allowing investors to invest small amounts periodically i.e. weekly, monthly or quarterly. Investors understand that mutual funds offer risk management better than direct equity. They also know that SIP provides the benefit of Rupee Cost Averaging,” says Zende.

Thanks to the favourable overall macro-economic factors, investors are keen to continue their SIPs and those who never invested in mutual funds have now started their investment journey,” she adds.

“The mutual fund industry has demonstrated remarkable growth, becoming a cornerstone of financial stability and wealth creation for crores of investors. The industry continued to benefit from sustained flows into equity-oriented mutual funds, hybrid funds and passive funds,” says Venkat Chalasani, Chief Executive of AMFI.

Also Read | Sebi imposes limits on passive mutual funds investing in sponsor group companies
Also Read | Hybrid mutual funds: These 4 categories are most popular among retail investors
Also Read | Small-cap stock jumps 4% after HDFC Mutual Fund stake buying
Catch all the Mutual Fund news and updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.MoreLess
First Published:9 Jul 2024, 08:47 PM IST
HomeMutual FundsMutual funds: SIP inflows on rise, shows AMFI data; why retail investors find systematic investment plans appealing

Most Active Stocks

Tata Steel

167.05
03:57 PM | 16 JUL 2024
0.25 (0.15%)

Oil & Natural Gas Corporation

322.40
03:58 PM | 16 JUL 2024
-0.15 (-0.05%)

Bandhan Bank

198.30
03:41 PM | 16 JUL 2024
2.95 (1.51%)

Coal India

512.35
03:59 PM | 16 JUL 2024
14.4 (2.89%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Natco Pharma

1,281.05
03:59 PM | 16 JUL 2024
73.2 (6.06%)

Century Textiles & Industries

2,217.55
03:48 PM | 16 JUL 2024
116.85 (5.56%)

Tata Teleservices Maharashtra

81.33
03:54 PM | 16 JUL 2024
4.23 (5.49%)

India Cements

323.05
03:55 PM | 16 JUL 2024
15.8 (5.14%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    75,246.00928.00
    Chennai
    75,099.00344.00
    Delhi
    74,806.00-460.00
    Kolkata
    75,466.00419.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00

    Popular in Mutual Funds

      More From Popular in Mutual Funds
      OPEN IN APP
      HomeMarketsPremiumInstant LoanMint Shorts