Mutual funds’ SIP collection jumps 31% to Rs. 1.5 lakh crore in 2022

Contributions to mutual fund schemes through systematic investment plans or SIPs remain unfazed from the market volatility in 2022 with inflow growing to Rs 1.5 lakh crore in 2022, a surge of 31 per cent from a year earlier, due to higher retail participation.

In comparison, an inflow of Rs 1.14 lakh crore through the route was registered in 2021 and Rs 97,000 crore in 2020, data with the Association of Mutual Funds in India (AMFI) showed.

Going ahead, SIP numbers are expected to continue to remain strong in 2023 as investors are increasingly appreciating the importance of regular investing through the route, Kaustubh Belapurkar, Director – Manager Research at Morningstar Investment Adviser India, said.

“As newer investors come to the fore, the SIP numbers will continue to increase. While SIP numbers will remain strong, lump sum flows will be dependent on market levels and volatility, we have seen investors book profits when markets run up and re-allocate to equities when markets are lower,” he added.

Priti Rathi Gupta, Founder and MD at LXME, said the trend of investing through SIP will gain even more momentum in this year in order to enable the financial inclusion of investments by people beyond traditional instruments which will further contribute towards the increase in the assets under management (AUM).