Mutual fund SIPs collect Rs 7,727 cr in September

Mutual funds garnered Rs 7,727 crore of assets via SIP in September, 40 per cent higher than the inflows in the same month, last year, AMFI data shows. SIP inflows stood at Rs 7,658 crore in the preceding month.Mutual funds currently have around 2.44 crore (24.4 million) SIP accounts through which investors regularly invest in mutual fund schemes, especially equity mutual fund schemes.Systematic Investment Plan, or SIP as it is commonly known, is an investment plan offered by mutual funds which allows an investor to invest a fixed amount in a mutual fund scheme periodically at fixed intervals, say, once a month instead of making a lumpsum investment. The SIP instalment amount could be as small as Rs 500 per month. SIP is similar to a recurring deposit where you deposit a small /fixed amount every month.SIP is a very convenient method of investing in mutual funds through standing instructions to debit your bank account every month, without the hassle of having to write out a cheque each time.SIP helps in rupee cost averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market.AMFI data shows that the mutual fund industry had added about 10.17 lakh SIP accounts each month on an average during the FY 2018-19, with an average SIP size of about Rs 3,165 per SIP account.Monthly inflows through SIP (in Rs crore) are shown below: 2018-19 2017-18 2016-17 Total during FY 44,487 67,190 43,921 March 7,119 4,335 February 6,425 4,050 January 6,644 4,095 December 6,222 3,973 November 5,893 3,884 October 5,621 3,434 September 7,727 5,516 3,698 August 7,658 5,206 3,497 July 7,554 4,947 3,334 Jun 7,554 4,744 3,310 May 7,304 4,584 3,189 April 6,690 4,269 3,122 Source: Amfi

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