Mutual funds (MFs) are once again attracting record numbers of systematic investment plan (SIP) investors, with H1 FY24 witnessing the addition of 77 million SIP accounts, slightly surpassing H1 FY22’s 76.5 million. This resurgence is attributed to MF schemes performing well, supported by the market’s rapid recovery from this year’s March lows.
Key indices, including the NSE Nifty 50, Nifty Midcap 100, and Nifty Smallcap 100, displayed significant growth. Around 97% of equity plans delivered double-digit returns over the past year, reflecting a favorable investment environment.
Vishal Kapoor, CEO of Bandhan Asset Management Company (AMC), attributed the renewed investor confidence to strong fund performance and financial literacy initiatives. SIPs are increasingly favored by new and existing investors for disciplined wealth accumulation.
Saugata Chatterjee, Chief Business Officer at Nippon India MF, highlighted the expanding channels for SIP sales, with around 40% of new SIP registrations coming from first-time investors.
H1 FY24 welcomed 2.3 million new investors, with smallcap schemes garnering significant attention. Industry experts see potential for SIP growth to outpace current rates, suggesting a growth rate 3-5 times that of GDP.
This indicates a promising avenue for MFs to further expand and serve a larger investor base.
