Mutual fund SIP account addition reaches record 3.7 million in September

ET Intelligence group: The gross account registration in the systematic investment plan (SIP) category of mutual funds reached a record 3.7 million in September 2023, the data from AMFI shows. The new account opening remained above three million for the third month in a row despite higher volatility in the stock market taking the total SIP tally to 71.3 million, the highest total. The SIP route serves as an important plank for driving domestic inflows

Over the past three months, the average monthly gross SIP registration was 3.5 million compared with the previous 24-month average of 2.2 million reflecting the rapid pace of SIP additions. Due to the consistent gross registration, the net SIP registration on a 12-month rolling basis was 12.9 million, the highest in 12 months.

The SIP inflow remained equally upbeat. The SIP monthly book recorded Rs 16,042 crore of inflow in September. The SIP assets under management (AUM) surged to a record Rs 8.5 lakh crore. Over the past 12 months, SIP linked funds had an inflow of Rs 1.7 lakh crore. This is equivalent to the total FPI inflow during the period.

The SIP linked AUM has grown at 32% annually in the past five years compared with the 16% rise in the overall mutual fund AUM. This has lifted the share of SIP AUM in the total mutual fund AUM to 18.7% from 9.9% five years ago.