The Mutual funds industry continued to achieve new milestones following surge in the equity markets. According to the data from the Association of Mutual Funds in India (Amfi), total systematic investment plan (SIP) accounts for the first time have crossed one-crore mark in April. Investor awareness initiatives coupled with positive performance of equity schemes and increasing participation from B-15 cities could be one of the few reasons for rise in folios, says market experts.

Even as industry has seen rise in SIP folio accounts to 1.83 crore as on April 2016, SIPs inflow volume now stands at `3,000-3,500 crore on monthly basis from `2,500 crore a year earlier. According to the data from Amfi, total SIP accounts as on March 2016 was at 98.57 lakh and over 73 lakh in March 2015.

CVR Rajendran, CEO-Amfi said, “We crossed the one crore mark of SIP accounts in April, which is due to the efforts put in by the industry to reach out to B-15 cities and various investors awareness programmes taken by the fund houses.” Indian mutual fund industry touched new milestone in financial year 2015-16 with the total folio number reaching a five year high. The data from Securities and Exchange Board of India indicates that, total number of folios for mutual fund industry stood at 4.8 crore in FY16 its highest since since FY 12 when it was at 4.6 crore.

Dinesh Kumar Khara, MD and CEO at SBI Asset Management Company said, “There are multiple factors that have helped mutual fund industry see huge growth in SIP accounts. Firstly, investors have realised that SIPs are the best option during uncertain period and staying for longer duration can give better returns. Secondly there is ‘financialisation’ of saving where investors are moving from gold and real estate to financial savings.” He also believe that, if such momentum continues than equity flows can counter balance to foreign flows.

In FY16, despite some volatility in equity markets, equity mutual funds which also include equity linked saving schemes saw net inflows of `74,024 crore in financial year 2015-16.