The mutual fund industry experienced a surge in inflows during the fiscal year 2023-24, reaching a record Rs 2 lakh crore, propelled by a positive economic outlook and increased market participation, primarily through systematic investment plans (SIPs). This marked a substantial 28 percent year-on-year increase, showcasing the growing confidence of investors in this investment avenue.
Comparing this remarkable figure with previous years reveals a significant upward trend. In the fiscal year 2022-23, inflows through SIPs amounted to Rs 1.56 lakh crore, while it stood at Rs 1.24 lakh crore in 2021-22 and Rs 96,080 crore in 2020-2021, according to data provided by the Association of Mutual Funds in India (Amfi). This consistent growth trajectory underscores the increasing popularity of SIPs as a preferred investment route among investors.
A noteworthy observation is the remarkable surge witnessed in mutual fund SIP contributions over the past seven years, surpassing expectations. In 2016-17, SIP contributions amounted to Rs 43,921 crore, showcasing a remarkable increase over the years.
Furthermore, the SIP book has demonstrated a steady ascent, reaching an all-time high of Rs 19,270 crore in March 2024, from Rs 14,276 crore in March 2023, indicating a robust growth rate of 35 percent. This sustained growth trajectory highlights the growing inclination of investors towards adopting a disciplined investment approach.
The consistency in SIP contributions exceeding Rs 19,000 crore for consecutive months, particularly in February and March of the fiscal year, reflects a notable shift towards a more disciplined and strategic investment mindset among investors. This trend indicates a growing awareness and commitment towards long-term wealth creation and financial planning.
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