Market Overview

SIP industry crossed the five crore mark in January

SIP industry crosses five crore mark

The SIP industry crossed the five-crore mark in January despite market volatility. Despite a pullback in the investor flow received by equity schemes, the MF industry witnessed 26 lakh new SIPs opened in January. 

In the past five months, 24 lakh SIPs added in the MF industry indicated the importance of SIPs to investors. 

Are investors hesitating in opening SIPs?

Chief Executive officer PPFAS MF Neil Parish says, “We have seen investors now being more mature and willing to continue their SIPs despite market ups and downs. Investors who have come in over last 4-5 years have seen the benefits of staying invested in equities and see through market volatility.” 

However, the stock market volatility keeps investors from opening new SIP accounts. 

Since January 17, the market indices – S&P BSE Sensex and CNX NSE Nifty – corrected 4% each. 

Furthermore, investors finalizing tax-saving investments are impacting SIP account opening during January-March. 

What do industry experts say?

Chief executive officer NJ MF Rajiv Shastri states, “The surpluses with investors tend to be low and around Jan-March period as they are making their tax-planning investments in equity linked saving schemes or insurance policies. So, fresh account opening numbers can fluctuate depending upon market conditions and other factors, what is important is to see the SIP contributions coming into the industry.” 

Furthermore, financial planners advise that investors continue their SIPs during market volatility. 

Founder of Plan Rupee Investment Services Amol Joshi says, “SIPs give investors the benefit of rupee cost averaging. So, when markets correct investors accumulate higher number of units at lower prices and when markets rally they fetch lesser units at higher prices in the same SIP.” 


Investors gradually open SIP accounts as the SIP industry has crossed the five-crore mark. However, the market volatility has also made investors nervous about opening new SIP accounts. 

Also Read – Pankaj Chaudhary: India’s GDP reckoned to grow at 9.2%

Johannah is a passionate traveler. She is seeking remote places across India and exploring the benefits of being a Nomad. She has completed her bachelor's in Psychology Hons and diploma in Graphology. Being able to write helps her to share her experiences and be independent to travel anywhere.

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