The ratio of new and closed accounts was at a 27-month high reflecting strong bullish sentiment among investors. It has consistently risen for the past three months in a row. The one-year average ratio was 1.8. In February, investors opened 49.7 lakh SIP accounts and closed 21.3 lakh taking the net SIP addition to 28.4 lakh which is nearly double that of the one-year average addition.
AgenciesNet SIP addition grew by 66% annually over the past five years supporting the 34% annual growth in the SIP asset under management (AUM) during the period. Total SIP AUM reached a record ₹10.5 lakh crore in February 2024. Their contribution in the total mutual fund AUM has nearly doubled to 19.3% over the past five years. Gross monthly SIP book rose by a five-year compounded annual growth of 18.8% to ₹19,186 crore in February 2024.
Apart from investing in safer bets such as large caps, dividend yield, and multi-cap fund schemes, SIP investors have also raised allocation to relatively risky small-cap funds and niche fund categories.
In February, 41% of the total monthly equity inflow was in sectoral funds, thanks to addition of new funds such as Groww Banking & Financial Services fund, Quant PSU fund, SBI Energy Opportunities fund that took the total sectoral funds tally to 155, the highest among all equity funds and accounting for one-third of the total equity funds.