More than 20 lakh SIPs stopped in Dec’23: Amfi

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Retail investors stopped SIPs in more than 20 lakh mutual fund accounts in December 2023. This is the highest number of folios in any given month in financial year 2023-24 (FY24) in which small investors have stopped their SIPs. In fact, the number of mutual fund accounts in which retail investors stopped investing in the ongoing fiscal has already surpassed the tally of such mutual fund accounts in both preceding two financial years i.e. FY23 and FY22. Mutual fund investors had stopped investing in total of 1.43 crore folios in FY23. While, in FY22, this number was 1.11 crore.

As of December 31, 2023, individual investors stopped SIP in total of 1.55 crore mutual fund accounts in the current fiscal.

So far, in FY24, monthly average of 17 lakh mutual fund accounts were such in which investors stopped SIPs. While, in FY23, this figure was 12 lakh. While, in FY22, this figure was only nine lakh.

Plus, as of December 29, 2023, retail investors’ average SIP contribution per mutual fund account in FY24 has also fallen as compared to that in entire of FY23. As of December 29, 2023, per folio SIP contribution in current fiscal has fallen to Rs 50,046.90 from Rs 62,038.90 in entire of FY23.

The SIP contribution in mutual funds in current fiscal so far is yet to beat entire tally of FY23. In the ongoing fiscal, 2.83 crore new SIPs were registered. While, the SIP contribution stands at Rs 1.41 lakh crore. Whereas, in FY23, number of new SIPs opened was only 2.51 crore. But the total SIP contribution was Rs 1.55 lakh crore. So, FY24’s SIP contribution is yet to beat SIP contribution figures of the preceding fiscal (FY23). This shows that per folio ticket size has fallen in FY24 as compared to that of the preceding fiscal.