MF industry receives Rs 4,600 crore a month via SIPs

In the face of increasing outflows in the mutual fund industry over the last two months of the June ended quarter of FY18, the SIP inflows are continuously charting growth in the industry.   

The AMFI data, coming as a good news for the Rs 19 crore MF industry, stated that the industry has posted an average monthly inflow of Rs 4,564 crore through SIPs, for the three-month period from April to June 2017.

In the month of June, the industry witnessed an inflow of Rs 4,744 crore. While, in the preceding quarter, from January 2017 to March 2017, the average monthly inflow of SIPs stood at Rs 4,023 crore.

The AMFI data also stated that the average SIP has increased by Rs 100 from the fourth quarter of FY17 and the ticket size of the SIP accounts for the April-June period was Rs 3,300.   

The industry added about 7.75 lakh SIP accounts every month to its bag on an average, in the April-June period of the current year, amounting to over Rs 20 lakh crore SIP accounts for the three months. At present, the industry has over 1.45 crore SIP accounts on an aggregate.  

According to industry experts, the many investors education and awareness programmes have been main drivers of the inflow, while the market rally has also attracted investors to invest in equity funds through SIP. The benefit of rupee cost averaging in the SIP route is also an incentive for the investors. Safe from market volatility it also frees the investors from worrying about investment timing.

SIPs have provided a consistent return in the long-term period ranging from 5 to 10 years. Market experts say that the ease and flexibility of investing in mutual funds via small monthly contributions have also played an important part.