People’s passion for investing money is increasing, investment has reached a record.

New Delhi. Investing in Systematic Investment Plan (SIP) is continuously increasing due to safe and excellent returns. Owing to the improving economic scenario and increasing market share, investments in mutual funds through SIPs increased by 28% on a year-on-year basis to a record Rs 2 lakh crore in FY 2023-24. Investment in mutual funds through SIP was Rs 1.56 lakh crore in FY 2022-23, Rs 1.24 lakh crore in 2021-22 and Rs 96,080 crore in 2020-21.

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

19 thousand crore rupees came in 2 months
SIP contributions have been over Rs 19,000 crore in two consecutive months of February and March this year. This reflects a trend among investors towards a more disciplined investment strategy. Karthik Junagadala, small case manager and founder of Quants Research said, “Investors have overvalued equities, inspired by last year’s strong performance. This shows that investors are regularly reviewing portfolios. And making changes accordingly.

Retail investors become game changers.
Industry experts believe that a buoyant economic outlook along with increased market participation by retail investors also helped boost SIP inflows. Investors’ confidence in mutual funds remains intact. This is also reflected in the number of SIP accounts reaching an all-time high of 8.4 crore in March 2024. Assets under SIP also increased to Rs 10.71 lakh crore in March.

What is a sip?
SIP is a type of Recurring Deposit Scheme, which invests money in 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. It does not burden the investor and his money also grows faster. Tax exemption benefit is also available on some SIP schemes.

Tags: Investments and Returns, mutual fund, Stock market