Systematic Investment Plan Inflows Jump to Rs 18,838 Crore in January ’24: Report

The Systematic Investment Plan (SIP) inflows surged to a new high of Rs 18,838 crore. This is the seventh consecutive month with inflows breaching the 15,000 crore mark and the 29th consecutive month with inflows exceeding Rs 10,000 crore in January 2024, as per a report. 

The sustained confidence of investors in systematic investment plans is suitably highlighted through this stellar performance. It also underscores a consistent trend of substantial inflows into the market.

Typically, SIP is a methodical strategy for investing that involves setting aside a modest, predetermined sum of money for market investment at consistent intervals, which could generally be on a monthly basis.

The SIP mode is a more preferred approach for investing in stocks and mutual funds (MFs), considering its ability to facilitate market participation while enhancing risk management capabilities.

Furthermore, the report states that the number of SIP accounts spiked to a record high of 7.92 crore in January 2024, marking a substantial year-over-year rise. 

Active SIP accounts experienced a notable jump, rising by about 1.7 crore as compared to 2023, highlighting a significant spike of 27.4%. This jump highlights the growing popularity and adoption of the SIP mode of investment among investors.

Similarly, The average size of a SIP stood at about 2,379 per SIP, highlighting a robust year-on-year (YoY) growth of 6.7%, as per the report. January 2024 experienced a significant surge in new SIP registrations, reaching a new high of 51.8 lakh, registering a 47% increase from the three-month average. 

On the other hand, SIP discontinuations totalled 23.8 lakhs, surging by 29.6% from the three-month average. This resulted in a net SIP addition of 28.1 lakhs, clocking an all-time high and spiking by 65.9% from the three-month average, highlighting the growing traction and investor confidence in SIPs.

The SIP segment also set a new benchmark as its Assets Under Management (AUM) experienced an uptick, breaching the mark of Rs 10 lakh crore for the first time, tipping at Rs 10.3 lakh crore, highlighting a notable YoY increase of 52.4% in January 2024. 

These figures showcase the growing prominence of SIPs in the investment landscape. At the moment, SIPs comprise 19.5% of the total AUM. This highlights a significant share of investor portfolios. 

In addition, within the open-ended equity-oriented AUM category, SIPs have registered an even more significant presence, comprising 35.0% of the total AUM; this showcases their crucial role in shaping investment strategies.

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