Mutual Fund SIP AUM at all-time high at INR 4.67 lakh crores

New Delhi, June 2021: Individual Investor interest in the Indian Mutual Fund Industry, as an avenue to generate long term wealth creation, is rising every year, evident from the overall rise in the SIP Folios, SIP Contribution and SIP AUMs over the past five years.

As per AMFI data, Mutual Fund SIP AUMs have seen close to four-fold jump to INR 4,67,366.13 crores as on May 31, 2021, from INR 1,25,394 crores as on August 31, 2016.

The annual Mutual Fund SIP contribution too has seen more than two-fold rise during the past five years to INR 96,080 crores during April 2020 to March 31, 2021, the pandemic inflicted year from INR 43,921 crores during April 2016 to March 2017. Over the past five years, the SIP AUM has grown 30 per cent annually, twice as fast as the growth in the Mutual Fund industry AUM.

Mutual Fund Monthly SIP contribution too has seen healthy rise of 2.52 times to INR 8,818.9 crores as on May 31, 2021, from INR 3,497 crores as on August 31, 2016. In CY 2021 alone, for the first five months, SIPs have contributed INR 42,148 crores.

Retail Investor affinity towards Mutual Fund asset class has seen meteoric rise evident from Mutual Fund SIP Accounts during the last five-year period jumping almost four times to 3.88 crores as on May 31, 2021, from 1 crore as on April 30, 2016.

The number of new SIPs registered on a month-on-month basis has seen almost three-fold jump to 15.48 lakhs as on May 31, 2021, from 5.88 lakhs as on April 30, 2016. 

Mr N S Venkatesh, Chief Executive, AMFI said: "Increasingly small savers have realized that with bank interest rates on a declining curve for last few years, inflation-adjusted superior qualitative returns over longer term, could come only from the Mutual Fund asset class. Hence the rising affinity towards MF asset class, especially through the SIP route. Depending on their life-stage goals and risk appetite, small savers have been moving savings to mutual fund SIPs, away from bank deposits, as bank rates continue to witness declining trend.”

Mutual Fund Systematic Investment Plan (SIP) as it is popularly known now, is an investment methodology offered by Mutual Funds wherein an individual saver could invest a fixed amount in a chosen mutual fund scheme periodically at fixed intervals - say once a month instead of making a lump-sum investment. The SIP instalment amount could be as small as INR 500 per month. Mutual Fund SIPs are like a recurring bank deposit where you deposit a small /fixed amount every month.

Mutual Fund SIPs is a very convenient method of investing in mutual funds through standing instructions to debit your bank account every month, without the hassle of having to write out a cheque each time. 

Mutual Fund SIPs have been gaining popularity among Indian savers, as it helps in Rupee Cost Averaging and in investing in a disciplined manner without worrying about market volatility and timing the market. 

About AMFI:

Association of Mutual Funds in India (AMFI) is a non-profit trade association of all asset management companies of SEBI registered mutual funds in India. AMFI was incorporated on August 22, 1995, as a non-profit organisation. Currently, all the 44 asset management companies of mutual funds registered with SEBI, are its members.

The AMFI is dedicated to developing the Indian Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain standards in all areas with a view to protecting and promoting the interests of mutual funds and their unit holders.