In November 2023, investments in mutual funds through systematic investment plans (SIPs) achieved a record high, totaling US$ 2.1 billion (Rs. 17,073 crore). This marked the continuation of a noteworthy trend, where each of the last five months, starting from July 2023, surpassed the previous record of SIP inflows in the subsequent month. The cumulative SIP inflows in mutual funds for the first 11 months of 2023, concluding on November 30, amounted to an impressive US$ 20 billion (Rs. 1,66,131 crore). This showcases a substantial increase of 22.23% compared to the corresponding period last year.
The consistent surge in SIP contributions can be attributed to the enduring bull market trend. Indices such as Sensex and Nifty 50 consistently reaching new highs serve as a motivating factor for retail investors. As portfolios grow, investors are prompted to augment their mutual fund investments through SIPs, contributing to the sustained upward trajectory.
Ajit Menon, CEO of PGIM India Mutual Fund, points to a shift in investor attitudes, increased disposable income, and robust market conditions as influential factors driving the popularity of SIPs. Awareness campaigns highlighting the simplicity of SIPs have also played a role in attracting new investors. Preeti Zende, a Sebi-registered investment advisor, underscores SIP’s key advantage of investing at regular intervals. Investors recognize the risk management benefits and appreciate features like Rupee Cost Averaging. Amid India’s promising GDP growth rate, SIPs continue to be an appealing investment choice for a diverse range of investors.
