Indian investors could see Rs 250 per month SIP soon: SEBI Chief
Speaking at a CII event here, Buch said the initiative is being worked on in collaboration with the mutual fund industry.
A recent data has highlighted that the number of investors signing up for systematic investment plans (SIPs) of mutual funds far outnumber those discontinuing their SIPs.
Even as the experts cautious sound over expensive stock valuation, data released by the Association of Mutual Funds in India (AMFI) showed that the SIP stoppage ratio, indicating closed accounts under mutual fund SIPs relative to new openings, slipped to a 27-month low in February.
In February, 49.80 million new SIP accounts were registered, compared with 51.84 million a month ago, down 4 per cent.
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Discontinuations fell 10.3.per cent during the period to 23.8 million from 21.33 million, data said.
The ratio of SIPs stopped as a percentage of fresh SIPs registered came in at 42.83 per cent in February, slowest pace of rise since December 2021, from 46 per cent in January.
Analysts believe that the investors have also seen steep declines in prices of select stocks due to factors such as earnings shocks and regulatory actions, which makes them prefer diversified portfolios.
And an SIP in mutual funds helps them do that. Many first-time investors perceive MF as a relatively less risky avenue to invest in stocks instead of picking shares on their own, they said.
Notably, the data said that in February, open-ended equity funds saw a 23 per cent increase in inflows to Rs 26,865.78 crore, marking the 36th consecutive month of positive equity fund flows since March 2021.
Systematic investment plans (SIPs) hit a record high of Rs 19,186 crore, with 8.20 crore SIP accounts.
The industry’s net Assets under management(AUM) reached Rs 54,54,214.13 crore in February.
Further, the AMFI has urged members to curb inflows into small and mid-cap funds to protect investors from a potential crash.
This request follows communication from India’s market regulator, SEBI, which also mandates additional information disclosure about the risks associated with these funds.
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