Mutual Funds' SIP collection rises 25% to ₹1.56 lakh crore in FY23

Inflows in the mutual fund industry through systematic investment plans or SIPs reached Rs 1.56 lakh crore in 2022-23, up 25 per cent from the preceding fiscal, suggesting retail investors' trust in the route despite volatility in the markets.

In comparison, an inflow of ₹1.24 lakh crore through the route was registered in 2021-22 and ₹96,080 crore in 2020-2021, data with the Association of Mutual Funds in India (Amfi) showed.

Moreover, mutual fund SIP contribution has seen over three-fold rise during the last seven years. It was at ₹43,921 crore during 2016-2017.

Additionally, SIP book has also grown consistently from ₹12,328 crore in March 2022 to an all-time high of ₹14,276 crore in March 2023, indicating a growth of 16 per cent.

During the financial year, SIP inflows averaged nearly ₹13,000 crore flows per month, helping investors to stay in the stock market and benefit from rupee cost averaging. The steady inflow suggests resilience in domestic market which have been a strong counterbalance to FPIs (Foreign Portfolio Investors) selling.