MF Update: Mutual fund SIP contribution dip by 6 per cent

Systematic investment plan of mutual funds is in highlights again. This time not with new highs but with SIP contribution registering a decline in the month of April 2018.

According to AMFI's latest data, mutual funds have 2.16 lakh crore SIP accounts. The total amount collected by these SIPs in the month of April 2018 stood as Rs. 6,690 crore as against Rs. 7,119 crore in March 2018, down by ~6%. It is considered that this is mainly due to unstable market conditions.

On the contrary, with the increasing awareness about mutual funds among investors, the number of folios has risen by over 8 lakh in just one month to reach an all-time high of 7.22 crore at the end of April 2018. Folios are nothing but the numbers assigned to the individual investor account, however, an individual investor can have multiple accounts.

According to AMFI data, the number of investor accounts among 42 fund houses has grown by 8.38 lakh to reach Rs. 7,21,85,970. In the recent past with the increasing contribution from retail investors, more specifically small town investors, the investor accounts have been increasing in equity funds. The recent data represents, Folios in equity and equity-linked saving schemes (ELSS) grew by 7.35 lakh.