The Systematic Investment Plan (SIP) inflows have surged to a record high of ₹18,838 crores in January 2024, marking the seventh consecutive month with inflows surpassing ₹15,000 crores and the twenty-ninth consecutive month with inflows exceeding ₹10,000 crores. This robust performance underscores the sustained confidence of investors in systematic investment plans, reflecting a consistent trend of substantial inflows into the market.
SIP, which stands for Systematic Investment Plan, is a methodical strategy for investing that entails setting aside a modest, predetermined sum of money for market investment at consistent intervals, typically on a monthly basis. It is the favored approach for investing in stocks and Mutual Funds due to its ability to facilitate market participation while enhancing risk management capabilities.
The number of SIP accounts soared to a record high of 7.92 crore in January 2024, marking a substantial increase year-over-year. The active SIP accounts also witnessed a notable uptick, rising by approximately 1.7 crore compared to the previous year, reflecting a significant surge of 27.4%. The average size of a SIP stood at an estimated ₹2,379 per SIP, demonstrating a robust year-on-year growth of 6.7%.
January 2024 also saw a remarkable surge in new SIP registrations, reaching a record-breaking 51.8 lakhs, marking an impressive 47% increase from the three-month average. However, SIP discontinuations totaled 23.8 lakhs, resulting in a staggering net SIP addition of 28.1 lakhs, setting an all-time high and surging by an exceptional 65.9% from the three-month average, underscoring the growing traction and investor confidence in SIPs.
The SIP segment also witnessed a remarkable milestone as its Assets Under Management (AUM) surged past the unprecedented mark of ₹10 lakh crore for the first time, reaching ₹10.3 lakh crore, showcasing a notable year-on-year increase of 52.4% in January 2024. This achievement underscores the growing prominence of SIPs in the investment landscape, representing 19.5% of the total AUM and 35.0% of the total AUM in the open-ended Equity-oriented AUM category.
Overall, the Geojit report revealed a strong and sustained trend of SIP inflows, registrations, and AUM growth, emphasizing the growing popularity and adoption of SIP among investors. The continued surge in SIP inflows and AUM is indicative of the sustained confidence and interest of investors in the Indian market.
