SIP book at fresh all-time high, tops Rs 25,000 crore for first time

The rise in the SIP book came amid weak performance by equity markets last month.

Investments into mutual funds via monthly systematic investment plans (SIPs) topped the Rs 25,000-crore mark for the first time in October 2024 as investors increased their bets amid the bearish market trend during the month.

Data released by the Association of Mutual Funds of India (AMFI), the industry trade body for mutual funds, showed on November 11 that the SIP book stood at Rs 25,322.74 crore in October, an all-time high against Rs 24,509 crore in September.

The number of SIP accounts stood at its highest ever at 10.12 crore in October 2024 as compared to 9.87 crore in September.

Also, during October, net 24.19 lakh SIP accounts were added, showing a bullish stance of retail investors on Indian markets. The number of new SIPs registered in October 2024 stood at 63.69 lakh.

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The rise in the SIP book came amid weak performance by equity markets last month. Both the Sensex and the Nifty were down 5.77 percent and 6.22 percent in October.

Earlier, the SIP assets under management (AUM) had hit the highest ever at Rs 13.81 lakh crore for the month of September 2024 compared to Rs 13.39 lakh crore for the month of August 2024.

However, due to mark-to-market losses in October, the SIP AUM came down to Rs 13.30 lakh crore at the end of the month.

Overall, data shows that open-ended equity mutual fund inflows surged 21.69 percent on a month-on-month (MoM) basis to Rs 41,887 crore in October across the equity fund segment.

Venkat Chalasani, Chief Executive, AMFI said, "The continued surge in SIP accounts, now exceeding 10.12 crore along with a record monthly SIP contribution of Rs 25,322.74 crore, demonstrates the growing preference for disciplined investing among Indian investors. These milestones reinforce our commitment to making mutual funds the cornerstone of wealth creation for every Indian investor, as we continue to build a more financially inclusive nation.”

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Investments via SIPs have been on an upswing since 2016-2017.

Data shows that SIP inflows stood at Rs 3,122 crore during April 2016, and reaching around Rs 8,500 crore during March 2020. These investments picked up pace further after Covid-19 outbreak and breached the Rs 10,000 crore level for the first time in September 2021 and then hit the Rs 20,000 crore level for the first time in April 2024.

"October numbers are indeed phenomenal, especially given the backdrop of a steep market correction. Strong inflows across large-cap, mid-cap, and small-cap funds, as well as sustained interest in Sectoral and Thematic funds, indicate that investors are looking beyond short-term market fluctuations and focusing on long-term wealth creation,” said Santosh Joseph, Co-founder and CEO of Germinate Investor Services.