New SIP registrations fall MoM in Feb even as flows into equity funds rise

Amfi data shows that in February, 2.34 million new SIP accounts were opened compared to 2.65 million in January

Flows into the equity funds rose sharply in February even as contributions from the systematic investment plan (SIP)  route remained flat even as account opening dipped.

The data from Association of Mutual Funds in India (Amfi) shows that in February, around 2.34 million new SIP accounts were opened compared to 2.65 million in January.

The inflows through SIPs also saw marginal dip at Rs 11,438 crore in February against Rs 11,517 crore seen in January. Market participants said that the dip is on account of intense volatility seen in the Indian markets.

“Overall, the markets globally were looking very weak due to the geo-political situation in Ukraine and foreign portfolio investors (FPIs) were on a selling spree in India. Investors would be waiting at the fence and expect them to enter when there is some normalcy in the markets,” said a senior official from the industry.

In the current financial year, total new SIP accounts stood at 24.54 million, while SIPs discontinued or whose tenure got completed were at 10.06 million accounts. The assets under management (AUM) of SIP was at Rs 5.49 trillion in February as against Rs 5.76 trillion in January.

Despite the fall in inflows through SIPs and new accounts opened, equity funds have continued to see net inflows of Rs 19,705 crore in February. Officials in the industry said that although there was a sharp fall in the Indian equity market in February the SIPs have not fared badly.

“The stable SIP flows as well as passive investment options despite global geopolitical conflagration, show the keenness of a large segment to stick to the knitting in terms of asset allocation. This continues to act as an effective counterweight to FPIs outflows and is helping stabilise the markets more robustly than before,” said Vikaas M Sachdeva, CEO at Emkay Investment Managers. 

Number of new SIPs registered in last six months

	New SIP registartion (in mn)
Feb 22	2.35
Jan 22	2.65
Dec 21	2.21
Nov 21	2.32
Oct 21	2.38
Sep-21	2.68