Passion to invest money is increasing among people, investment reached record

New Delhi. Due to safe and excellent returns, investment in Systematic Investment Plan (SIP) is continuously increasing. Due to improving economic scenario and increasing market share, investment in mutual funds through SIP increased by 28 percent on an annual basis to a record Rs 2 lakh crore in the financial year 2023-24. Investment in mutual funds through SIP was Rs 1.56 lakh crore in the financial year 2022-23, which was Rs 1.24 lakh crore in the year 2021-22 and Rs 96,080 crore in 2020-2021.

Data from the Association of Mutual Funds in India (Amfi) shows that mutual fund contributions through SIP have seen more than four times growth in the last seven years. In the financial year 2016-17, this amount was Rs 43,921 crore. In the month of March, fund investment through SIP reached an all-time high of Rs 19,270 crore with a high growth of 35 percent. In March 2023, this figure was Rs 14,276 crore.

19 thousand crores came in 2 months
SIP contributions have been more than Rs 19,000 crore in two consecutive months of February and March this year. This reflects a trend towards a more disciplined investment strategy among investors. Karthik Jonagadala, small-case manager and founder of Quantus Research, said, “Investors gave more importance to equities, inspired by the strong performance last year. This shows that investors are regularly evaluating the portfolio and making changes accordingly.

Retail investors become game changers
Industry experts believe that an upbeat economic outlook along with increasing market participation by retail investors also helped in increasing SIP inflows. Investors continue to have confidence in mutual funds. This is also reflected in the number of SIP accounts reaching a record high of 8.4 crore in March 2024. Assets under management (AUM) from SIP have also increased to Rs 10.71 lakh crore in March.

what is sip
SIP is a type of recurring deposit scheme, which invests money in other options including the stock market. An investor opening an account in SIP deposits a fixed amount in the account every month, which the fund house invests in various options to earn strong returns. This does not put any burden on the investor and his money also grows faster. The benefit of tax exemption is also available on some SIP schemes.

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