SIP investment tumbles again in January
January 2021 becomes the seventh consecutive month when there has been net outflow from the equity dedicated mutual funds. Although the pace of the outflow has declined compared to December 2020, it remained at an elevated level of Rs 9,253 crore.
The worst part of such an outflow is that even systematic investment plans (SIPs) get impacted. For the month of January 2021, the total investment through SIP has come down to Rs 8,023 crore. It is down by 5 per cent on a sequential basis while on yearly basis, it is down by 6 per cent.
SIP for last one year
|
Month
|
SIP (Rs in crore)
|
Month-on-month change (per cent)
|
|
Feb-20
|
8,513
|
|
|
Mar-20
|
8,641
|
1.5
|
|
Apr-20
|
8,376
|
-3.1
|
|
May-20
|
8,123
|
-3.0
|
|
Jun-20
|
7,917
|
-2.5
|
|
Jul-20
|
7,831
|
-1.1
|
|
Aug-20
|
7,792
|
-0.5
|
|
Sep-20
|
7,788
|
-0.1
|
|
Oct-20
|
7,800
|
0.2
|
|
Nov-20
|
7302
|
-6.4
|
|
Dec-20
|
8,418
|
15.3
|
|
Jan-21
|
8,023
|
-4.7
|
The number of SIP accounts, however, increased by 8.78 lakh to 3.55 crore in January 2021. It has increased consistently from 3.14 crore (at the beginning of the financial year FY21). There are some SIP accounts that are being closed; however, the number of such accounts has remained around 7 lakh every month compared to the average addition of around 10 lakh every month. Even the AUM under SIP has increased in the last one year and is around Rs 4 lakh crore. All these indicate that the fall in the SIP may be due to profit booking and pausing for investment at the historical high of the market.