SIP collection for mutual funds soars to Rs 1.66 lakh cr in 2023; smaller tickets encourage influx

Systematic investment plans, or SIPs, are becoming increasingly popular among investors; in the first 11 months of 2023, inflows into these plans reached Rs 1.66 lakh crore. Sebi’s decision to reduce the ticket size to Rs 250 is expected to stimulate further investment in SIPs. According to data from the Association of Mutual Funds in India (AMFI), the total amount invested in the first 11 months of this year is much more than the total amount spent through the route in all of 2022, 1.14 lakh crore in 2021, and Rs 97,000 crore in 2020.

The Chief Business Officer of Motilal Oswal AMC, Akhil Chaturvedi, projected a steady and robust yearly increase in the total number of SIP participants going forward.

“With a buoyant economic outlook and increased market participation, investors are likely to continue favouring SIPs as a disciplined and accessible investment avenue. The ongoing strength in the market, coupled with the potential for healthy returns, reinforces our belief that the upward trend in SIPs will persist throughout 2024,” he stated.