Retail investors are increasing investment through SIP!!!

Retail investors are adopting mutual funds for exposure to the stock market and that too by investing through Systematic Investment Plan (SIP). This is the reason why the number of SIP accounts of mutual funds has increased by 59 percent between march 2022 and march 2024. By July 2024, the number of SIP accounts has increased to 9 crores. Zerodha Fund house has done a study in which there has been a sharp jump in the acceptance of SIP among retail investors.

According to this study of Zerodha Fund house, both SIP accounts and SIP investment have seen a strong jump in the last few years. Systematic Investment Plan AUM accounts for 20 per cent of the total AUM (Asset Under Management) of the country's total mutual fund industry. According to the report, there were 5.28 crore SIP accounts in march 2022, the number of which increased to 8.4 per cent in march 2024 with a growth of 59 per cent and this trend is still continuing. In July 2024, the total number of SIP accounts has reached 9 crores.

If we look at the contribution in mutual funds for Systematic Investment Plan, SIP investment of Rs 12000 crore came in march 2022, which increased to Rs 19,000 crore in march 2024 and in July 2024 it has also crossed Rs 23,000 crore. That is, from march 2022 till now, there has been an 89 per cent jump in SIP investment. According to the study, even though the number of SIP accounts and investments coming through SIPs has increased, the average SIP amount has remained stable between Rs 2200 - 2500. vishal Jain, CEO of Zerodha Fund house, said, to avail the full benefit of Systematic Investment Plan in the long term, investors should stay disciplined and invested in all market conditions and also keep increasing the SIP contribution as their income increases. With this strategy, SIP will ensure that your investment pace remains intact with inflation and changing financial goals.