Monthly systematic investment plans (SIPs) for the first time ever crossed the Rs 26,000 crore mark in the month of December, which goes to prove that small investors continue to rely on mutual funds for long-term investments, as per the data released by the Association of Mutual Funds of India (AMFI) on Thursday.
The SIP contribution during the last month stood at Rs 26,459 crore compared to 25,320 crore in November.
Along with the SIP, mutual fund folio also witnessed a surge at 22.50 crore in December, up from 22.02 crore in the preceding month.
There was a significant 233 percent year-on-year growth in the overall net inflows into SIPs in India last year, as the Indian economy remains resilient amid rough geo-political conditions, according to earlier reports.
According to Ashwini Kumar of credit ratings agency ICRA Analytics, with the structural growth story of the Indian economy remaining intact and India a bright spot in the global economy, the domestic mutual fund industry is expected to witness multi-fold growth in the coming years.
This increase in SIPs comes at a time when equity market performance was subdued last month. Both Sensex and Nifty were down 2.08 per cent and 2.02 per cent in December.
A record 42,76,207 investors joined the Indian stock market in November, according to the National Stock Exchange (NSE) data. In the July-September period this year, a total of 1,60,06,447 (over 1.6 crore) people joined the stock market, as India’s equity markets soared to record highs.
The stock exchange also informed that till December 23 this year, the total number of registered investors stood at 21,02,25,329 (over 21.02 crore).
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