Monthly systematic investment plans (SIPs) in India exceeded the Rs 26,000 crore mark for the first time in December, signaling strong trust among small investors in mutual funds for long-term growth, according to the Association of Mutual Funds of India (AMFI) data released on Thursday.
SIP contributions reached Rs 26,459 crore in December, up from Rs 25,320 crore in November. Additionally, mutual fund (MF) folios surged to 22.50 crore, compared to 22.02 crore the previous month.
This milestone comes amid a challenging year for the Indian economy, which showcased a remarkable 233% year-on-year growth in net SIP inflows, underscoring resilience against global geopolitical uncertainties.
Ashwini Kumar from ICRA Analytics emphasized that India’s structural growth story remains robust, positioning the domestic mutual fund industry for significant expansion in the upcoming years.
The surge in SIP contributions occurred despite a subdued equity market performance in December, with the Sensex and Nifty indices declining by 2.08% and 2.02%, respectively.
Investor confidence is reflected in the record 4,276,207 new stock market investors in November, as reported by the National Stock Exchange (NSE). During the July-September quarter, over 1.6 crore individuals joined the stock market, driving India’s equity markets to record highs.
As of December 23, the total number of registered investors stood at 21.02 crore, showcasing continued robust participation in the market.
