Investors' love for systematic investment plans is growing every month. According to AMFI data, Indian mutual funds now have currently about 1.52 crore (15.2 million) SIP accounts through which investors regularly invest.
SIP allows one to invest a fixed amount in a mutual fund scheme at fixed intervals, instead of making a lumpsum investment. The SIP instalment amount could be as small as Rs 500 per month.
While there are no comparable financial products like SIP in the personal finance area, some parallels can be drawn. In comparison to 1.52 crore SIP MF accounts, the life insurance industry has 0.68 crore policies.
SIP has been gaining popularity among Indian MF investors as it helps in rupee cost averaging and also in investing in a disciplined manner without worrying about market volatility and market timing.
AMFI data shows that the MF industry had added about 8.23 lacs SIP accounts each month on an average during FY 2017-18, with an average SIP size being Rs 3,250 per SIP account.
Monthly investments during FY 17-18
| Month | SIP Contribution (Rs crore) |
| July | 4947 |
| June | 4744 |
| May | 4584 |
| April | 4269 |
During FY 16-17, a total of Rs 43,921 crore was collected through SIP. Indians are finally investing through a more contemporary investment vehicle like mutual funds and at the same time, adopting the time-tested route of SIPs.
Monthly investments during FY 16-17
| Month | SIP Contribution (Rs crore) |
| March | 4335 |
| February | 4050 |
| January | 4095 |
| December | 3973 |
| November | 3884 |
| October | 3434 |
| September | 3698 |
| August | 3497 |
| July | 3334 |
| June | 3310 |
| May | 3189 |
| April | 3122 |
While most investors worry about market timing and valuations, SIPs are all about staying focused on long-term investments. It helps offset the highs and lows so that you can expect reasonable returns at the end of your tenure.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
