SEBI's initiative will boost record SIP investment in 2023, eyes set on further growth

सेबी की पहल से 2023 में रिकॉर्ड SIP निवेश को बढ़ावा मिलेगा, निगाहें और वृद्धि पर टिकी हैं

The popularity of systematic investment plans (SIPs) surged in 2023, with investments reaching Rs 1.66 lakh crore in the first 11 months, surpassing the total amount collected in the entire 2022, according to Association of Mutual Funds in India (AMFI) data.  

SEBI's decision to reduce the investment ticket size to Rs 250 with the aim of encouraging more investments is expected to further increase investors' preference towards SIPs

  Compared to Rs 1.5 lakh crore collected in 2022, the substantial increase in investments during the first 11 months of 2023 indicates the growing attractiveness of SIPs.  According to PTI, the investment amount in 2021 was Rs 1.14 lakh crore and in 2020 it was reported to be Rs 97,000 crore.

  Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, expects continued year-on-year growth in SIP participation, led by positive economic outlook and increased market participation.  Known for its disciplined and accessible investment approach, SIP is likely to continue to find favor among investors.  The current market strength and healthy return prospects strengthen expectations of continued growth in SIP investments through 2024.

  SIP, offered by mutual funds, allows individuals to invest a fixed amount at regular intervals, such as once a month, instead of a lump sum investment.  These installments can be as little as Rs 500 per month.  SEBI aims to make mutual funds more accessible to promote financial inclusion and support the Indian capital market.  SEBI Chairperson Madhabi Puri Buch recently highlighted efforts to collaborate with mutual funds to enable SIPs starting from Rs 250, a move that is expected to further boost investments among the general public.