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Big information about SIP account, have you also invested money in Mutual Funds?

SIP Accounts: The number of SIP accounts closed increased by 7.4 percent on a monthly basis in May to 14.19 lakh, despite the strong investment in mutual fund schemes through the Systematic Investment Plan (SIP). However, registration of new SIP accounts has also increased from 19.56 lakh in April to 24.7 lahks in May. In this way, more than five lakh new accounts were registered last month.

AMFI released figures

This information has been revealed from the data of ‘The Association of Mutual Funds in India’ (AMFI), the apex body of the mutual fund industry. DP Singh, Deputy Managing Director, and Chief Business Officer, of SBI Mutual Fund, said that the higher number of new SIP accounts than closures reflects the continued confidence of investors in this investment vehicle.

Increased number of cancellations of old accounts
He said that the number of cancellations of old accounts has probably increased due to the facility of closure of SIP accounts being available through online mediums. Meanwhile, investors continued to park their money in mutual funds. SIP inflows declined marginally to Rs 13,728 crore in April, reaching a new high of Rs 14,749 crore in May. Earlier in March it was Rs 14,276 crore.

Investment had increased in May
Due to increased investment in May, SIP’s assets under management (AUM) increased by five percent to Rs 7.53 lakh crore, compared to Rs 7.17 lakh crore in April.

Investors investing more amount
The increase in SIP inflows amid the closure of old accounts means that new investors are investing more amount than the average investment. According to the data, the number of closed or maturing SIP accounts increased from 13.21 lakh in April to 14.19 lakh in May. 1.43 crore SIPs were closed or matured in FY 2022-23. This number was 1.11 crore SPI in the financial year 2021-22.

Equity mutual funds also increased.
Apart from this, the AUM of equity mutual fund schemes increased by 4.5 percent on a monthly basis in May to Rs 16.56 lakh crore. Equity plan sales grew 21 percent month-on-month to Rs 34,100 crore.