SIP Investment in Mutual Funds : Due to the increasing participation of retail investors, the mutual fund industry of the country is showing significant growth. In fact, investors in this industry are investing a lot through SIP, according to Nivesh.com, the AUM of SIP (Systematic Investment Plan) has increased to Rs 4.83 lakh crore by the end of June. The AUM of SIP has increased by 60 percent as compared to last year. Its AUM in June 2018 stood at Rs 2.005 lakh crore.
In June 2020, 9.13 lakh SIPs were registered, while in June 2021 this number increased to 21.29 lakh. There were 2.16 crore SIP accounts in the country in April 2018. At the same time, on June 30, 2021, SIP accounts of Rs 4.02 crore were made. The number of SIPs that were registered in the last 25 years was crossed only between 2018 and 2021.
Why are SIPs becoming popular?
According to Nivesh.com, there are many reasons for the popularity of SIP. Actually, the interest rate on the money deposited in the bank in the country has come down a lot. Compared to inflation, the returns are almost minus. In such a situation, the investor is investing in mutual funds through SIP considering his goal and risk taking ability. Here it is getting higher returns than inflation. This is also helping it in rupee cost averaging and also saving it from market volatility. Compared to the last year, the equity scheme of mutual funds has seen a growth of 55 percent and has increased to Rs 11.27 lakh crore.
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Investment in debt and index funds is also increasing
Debt mutual fund schemes are also very popular and investors who do not want to take risk are investing in it. Debt schemes account for 43 per cent of mutual fund AUM. This is an increase of 12.4 percent compared to the previous year. Index funds and ETFs are also attracting investors. Index Fund AUM has increased to Rs 24,947 crore as of June, 2021. It has increased by 123 percent as compared to last year.