The number of discontinued systematic investment plans (SIPs) has been growing at a faster rate even as new SIPs opened in the first 11 months of this fiscal year compared to all of the previous fiscal year.
Despite the sharp increase in inflows, the number of interrupted or lapsed SIP accounts rose 16 per cent to Rs 1.29 crore in the 11 months of this fiscal year compared to Rs 1.11 crore in the year. fiscal 22, according to data from the Association of Mutual Funds in India (AMFI). ).
By contrast, new SIPs registered in the past 11 months fell 14 per cent to Rs 2.30 crore from Rs 2.66 crore in FY22. In March, even if mutual funds add 24 lakh new SIP accounts, the highest figure in this fiscal year, will end FY23 at Rs 2.54 crore of new accounts, which will be about 5 per cent lower than FY22.
pause button
Kalpesh Seth, Director, Smart Investment Advisor, said investors preferred to stay on the sidelines for most of this fiscal year, as the noise around overvalued stock markets grew louder and investors hit the “off” button. “pause” recently introduced by mutual funds.
Also, he added, some SIP accounts that had expired were not renewed, but the good thing is that investors have not redeemed their investments. Attempts to open new SIP accounts have become difficult due to low stock returns, Seth said.
The total number of live SIP accounts grew by 18 per cent to Rs 6.29 crore in the last 11 months compared to Rs 5.28 crore in FY22. The growth is much lower compared to FY42 percent registered in the last fiscal year.
tepid performance
The slowdown in the registration of new SIPs can be attributed in part to the tepid performance of mutual funds. SIP’s assets under management increased by just 17 per cent to ₹6.74 lakh crore at the end of February compared to ₹5.76 lakh crore recorded in FY22.
AUM growth in FY22 compared to FY21 was much higher at 35 percent. Receipts from the top 30 cities also fell marginally to Rs 8,568 crore in February from Rs 8,646 crore in January, while those from beyond the top 30 cities fell 2 per cent to Rs 5,118 crore (5,211 crore). of rupees).
