Mutual Funds SIP: During the last five years, the trend of common investors towards investing in mutual funds has increased a lot. Investors are continuously investing through SIP. This is the reason why the asset base of SIPs increased to Rs 4.67 lakh crore by the end of May. This is the highest figure for the last five years. The SIP or SIP AUM has grown by 30 per cent every year in the last five years.
SIP AUM increased by 30% in five years
The AUM (Asset under Management) of SIPs has increased by 30 percent in the last five years. This is more than double the AUM of the entire mutual fund industry. According to the data released by the Association of Mutual Funds in India (AMFI) on Wednesday, the AUM of SIPs was Rs 1,25,394 crore in August 2016 which increased to Rs 4,67,366 crore in May 2021. That is, it has increased by four times. According to the data, the contribution to SIP has doubled on a yearly basis during the last five years. The annual SIP contribution in mutual funds in 2016-17 was Rs 43,921 crore which increased to Rs 96,080 crore in 2020-21.
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Two and a half times increase in monthly contribution in SIP
Monthly SIP contribution has increased by more than two and a half times on a yearly basis. In 2016-17, the monthly contribution in SIP was Rs 3,497 crore, while in May 2021 it increased to Rs 8,819 crore. In the first five months of the current financial year itself, SIP has contributed Rs 42,148 crore. This figure shows how the interest of retail investors has increased in the mutual fund industry in the last five years. SIP accounts have increased four times in the last five years. SIP accounts were one crore in April 2016 but now they have increased to 3.88 crores. It is expected to grow further.