Total Number of Mutual Fund SIP Accounts Stands at 1.08 crore..! - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Wednesday, October 12, 2016

Total Number of Mutual Fund SIP Accounts Stands at 1.08 crore..!

Total Number of Mutual Fund SIP Accounts Stands at 1.08 crore..!

Indian households are gradually learning to chase returns and boost savings by realising the compounding power of equity investments and are choosing one of the 
safest instruments to achieve this: systematic investment plans (SIP).

The growth in SIPs and the widening share of equities in total financial savings corroborate the trend.

In the past year, SIP accounts have increased by 27.1 lakh compared with 75 lakh such accounts registered over the past 30 years, according to the Association of Mutual Funds in India (AMFI).

The number of SIP accounts stands at 1.08 crore. The preference for SIP accounts can be gauged from the fact that more than half of them have been in operation for more than five years.

Three factors have made SIPs a preferred choice of investment.Fund houses and regulators have put in efforts to create awareness about mutual funds, spending Rs. 320 crore on investor education.

Secondly, distributors have been pushing SIPs aggressively as an efficient way of dealing with volatility in the markets.

In addition, the lack of suitable alternatives has convinced a large section of new investors that equity is a relatively safe option.

SIP account holders have been pouring in Rs. 2,500 crore to Rs. 3,500 crore every month in the past year to the overall assets under management of mutual funds in the country .

The value of assets under management of SIP accounts were Rs. 1.3 lakh crore in August, constituting about 8% of the total assets held by mutual funds at Rs. 16 lakh crore.

According to industry experts, SIPs accounted for almost 30% of the total equity mutual funds of Rs. 4.16 lakh crore in August.

The combined impact of indirect and direct investments in equities has boosted the proportion of shares and debentures in Indian household savings.

According to the Reserve Bank of India's annual report, household investments in shares and debentures increased by Rs. 91,763 crore in the year ended March.

The portion of shares and debentures in gross national disposable income increased to 0.7% in 2015-16 from 0.2% in 2011-12 .

On the direct equity side, retail investors own almost 7.6% of the total market capitalisation, which is double the assets under management of domestic mutual funds. 

The holdings of retail investors in BSE 200 stocks were valued at $96 billion in June compared with $88 billion two years ago.



Total Number of Mutual Fund SIP Accounts Stands at 1.08 crore..! Reviewed by S. Chitra on October 12, 2016 Rating: 5 Total Number of Mutual Fund SIP Accounts Stands at 1.08 crore..! Indian households are gradually learning to chase returns and boost sa...

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