Share of SIP AUM hits a record in September on sustained inflow

Investors using the systematic investment plan (SIP) route to investment have continued to gain heft despite higher stock market volatility. The share of assets under management (AUM) of the SIP linked funds in the total mutual fund AUM reached a record 16.5% in September 2022, the data of Association of Mutual Fund in India (AMFI) show.

The AUM share of the SIP linked funds rose by 200 basis points in the past 12 months and doubled in five years. The SIP AUM grew by 29% annually to Rs 6.4 lakh crore in the past five years while the total mutual fund (MF) AUM rose by 14% to Rs 38.42 lakh crore.

The SIP share expansion is primarily driven by improving monthly SIP inflow, which reached a record Rs 12,976 crore in September 2022 notwithstanding the fall in the benchmark indices. The cumulative SIP inflows on the rolling basis in the last twelve months increased to Rs 1.42 lakh crore, compared with Rs 96,000 crore a year before.

Over the past few months, the SIP flow has remained relatively resilient through market fluctuations. The average ticket size of the SIP investment has remained stable in the past one year between Rs 2,200-2,300 per account.

The SIP account addition grew by 27% annually in the past five years taking the total SIP accounts to 5.8 crore. The pace of new registrations remained encouraging with new account addition reaching a seven-month high of 22.7 lakh in September 2022.

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