In the calendar year 2024, mutual fund investors’ investment through the SIP (systematic investment plans) route touched ₹2,89,227 crore with the highest contribution of ₹26,459 crore in December.
Interestingly, December also happened to be the 46th month of positive equity inflows with the first one in March 2021. The mutual fund industry’s net AUM now stands at ₹66.93 lakh crore for December 2024.
Mutual fund folios hit an all-time high of ₹22.50 crore.
Experts point out that the popularity of SIPs can be attributed to rupee cost averaging, the concept of maximising gains by buying mutual fund units at different prices.
When you buy mutual fund units at different prices, the average purchase price is adjusted accordingly. As a result, the chances of maximising the profits are higher.
“SIP is a mechanism to invest regularly from mostly active income without worrying about the market level to achieve your long-term financial goals.SIP works on the rupee cost averaging method. It means over a long period of time, your cost of purchase becomes average due to the bear and bull market and your investments become less volatile in comparison to lumpsum investments. And for this reason, SIP should be run in all types of market conditions: bull or sideways,” said Preeti Zende, Founder of Apna Dhan Financial Services.
Retail investors’ contribution
Retail MF Folios (which include equity, hybrid and solution-oriented schemes) hit an all-time high of 17,89,93,911 for December 2024 as compared to 17,54,84,468 for November 2024.
Retail AUM stood at ₹39,91,313 crore for December 2024 as compared to an AUM of ₹39,70,220 crore in Nov 2024. The number of SIP accounts stood at the highest ever at 10,32,02,796 in December 2024 as compared to 10,22,66,590 in November 2024.
“Despite volatile market conditions, equity-oriented schemes continued to see strong inflows, reflecting investors’ confidence and commitment to stay invested for the long term. This behaviour highlights the growing maturity of investors. The SIP contribution reached an all-time high of ₹26,459.49 crores in December 2024 reflecting investors’ steadfast commitment to their financial goals,” said Venkat Chalasani, Chief Executive, AMFI.
