Mutual Fund SIP investment: In just six months of FY 2019-20, subscribers have contributed more to Mutual Fund SIP than they did in the entire FY 2016-17. According to Association of Mutual Fund in India (AMFI), the total contribution to SIP in FY 2016-17 was Rs 43,921 crore. In FY 19-20, investors have already put Rs 49,361 crore in SIP. On an average, 9.24 lakh SIP accounts were added every month during FY 2019-20 with an average SIP size of about Rs 2900 per account.
The encouraging SIP data has come at a time when fears of a slowdown in economy has been raised. The AFMI data show that people are shunning fears of market risks and investing in mutual funds SIP.
In FY 2017-18 and 2018-19, the total contributions to SIP were Rs 67,190 crore and Rs 92,693 crore respectively.
Last month, the total contribution to SIP was Rs 8263 crore, which is more than double of Rs 3698 crore people invested three years ago. In September FY 17-18 and FY 18-19, SIP contributions were Rs 5516 crore and Rs 7727 crore respectively.
The total number of new SIPs registered in September was 8.5 lakh, while the number of SIPs discontinued last month was Rs 5.63. In FY 2019-20 (till September), the total number of new SIPs registered is 55.45 lakh, while the number of SIPs discontinued is 33.75 lakh.
The above data released by AMFI shows that contribution to SIP is increasing and more people are taking to this financial instrument for investment.
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SIP (Systematic Investment Plan) is offered by mutual funds to allow people to invest a fixed amount periodically.
AMFI says, “SIP is a very convenient method of investing in mutual funds through standing instructions to debit your bank account every month, without the hassle of having to write out a cheque each time. SIP has been gaining popularity among Indian MF investors, as it helps in Rupee Cost Averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market.”
Mutual Fund investment is subject to market risks. Investors should do proper research, or take advice from financial advisors before investing.