Business

SIP Contributions Hit Record ₹2.89 Lakh Crore In 2024, Reflecting Investor Confidence

Mutual fund investments through systematic investment plans (SIPs) soared to an unprecedented ₹2.89 lakh crore in 2024, with December alone contributing a record ₹26,459 crore. This marked the 46th consecutive month of positive equity inflows, starting from March 2021.

The mutual fund industry’s net assets under management (AUM) reached ₹66.93 lakh crore by December 2024, driven by the growing popularity of SIPs and consistent inflows. Mutual fund folios also hit an all-time high of 22.5 crore.

Why SIP Are Gaining Traction

Experts attribute the rising adoption of SIPs to the rupee cost averaging concept. This strategy allows investors to buy mutual fund units at varying prices, lowering the average cost over time and maximizing long-term gains.

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“SIP enables regular investment from active income, helping investors achieve long-term financial goals regardless of market conditions,” said Preeti Zende, Founder of Apna Dhan Financial Services. She emphasized that SIPs reduce investment volatility compared to lump sum methods and perform well in all market scenarios.

Surge In Retail Participation

Retail mutual fund folios climbed to a record 17.89 crore in December, up from 17.54 crore in November. Retail AUM also rose to ₹39.91 lakh crore from ₹39.70 lakh crore during the same period. The number of SIP accounts surged to 10.32 crore, reflecting increasing investor interest.

Confidence Amid Market Volatility

Despite market fluctuations, equity-oriented schemes continued to see strong inflows. “This reflects investors’ growing maturity and commitment to long-term goals,” said Venkat Chalasani, CEO of AMFI. He noted the record SIP contributions in December as evidence of steadfast investor confidence.

With SIPs reaching new heights, India’s mutual fund industry is witnessing a transformative shift in retail investment behavior.

Shibra Arshad

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