Right from the days of demonetization, SIP Funds or Systematic Investment Plans in mutual funds have fancied lots of investors to invest small sums of money every month to gain desired corpus over a defined period of time. This volume of SIP investments have increased with time, reflecting an all-time high of Rs.4,200 crore in April, and not just that the number of SIP investment have doubled in the past three years.
Here are some stats from of past SIP Funds Activity in the market:
- In 2013- 14, 51.96 lakh SIPs were made, accumulating investment amount of Rs.1,206 Crores.
- By March 2017, the number doubled to Rs.1.28 Crores and accumulated investments of Rs.3,989 crore.
- The average ticket size of SIPs has increased from Rs.2,322 per SIP to Rs.3,121.
- The number of folios grew from 4.05 crore to 5.59 crore.
- SIPs are representing 92% on the MF industry for 2016-17
- New SIP registration number took a leap by 33% from 44.98 lakh to 55.95 lakh in 2016-17 (Data from CAMS MFDEX)
- Assets under management of SIPs increased to Rs.1,17,706 crore, displaying 52% of rise from Rs.77,159 in the previous year.
Why SIP funds gained so much attention?
There are ample of reasons that makes SIPs an attractive mode of investment to all types of investors. Some of the key benefits of investing in SIPs are:
- It allows you to invest in small amounts and thus encourages you to save
- Investors can not only average out their investments over a length of time, but it also saves them from market fluctuations.
- SIPs are to operate and can be easily started from asset management, wealth management websites, mobile apps or online distribution portals.
- Once a SIP is started, the monthly investment amount gets auto-debited a predetermined date, making investors to save forcibly.
- SIP can be started for all purposes, wealth creation, goal based investment or even tax saving