Direct plan SIPs bounce back in 2023 on the equity market euphoria

Direct plan distributors added 12.4 million SIP accounts in 2023, 39% more than in 2022

Direct plan mutual fund (MF) platforms re-entered the high growth path in 2023 after a tepid 2022, propelled by the sharp rally in the equity market. In calendar year (CY) 2023, direct plans added 12.4 million systematic investment plan (SIP) accounts, 39 per cent higher than the additions seen in the previous year. The sharp surge comes after the 2022 blip when registrations grew only 4.5 per cent and even lagged behind the traditional regular plans.

The pace of addition of new investors and SIP registrations, as seen in recent years, is linked to the performance of the equity market.