SIP accounts closures rise 7.4% to to 1.42 mn month-on-month in May
The number of systematic investment plan (SIP) accounts being discontinued rose 7.4 per cent month-on-month to 14.19 lakh in May, despite the stellar inflow into mutual funds through the route.
At the same time, the number of new SIP registration rose to 24.7 lakh last month from 19.56 lakh in April, implying fresh registration of over 5 lakh, data with the Association of Mutual Funds in India (AMFI) showed.
The higher number of SIP registration than discontinuation shows investors' continued confidence in the route, DP Singh, Deputy MD and CBO at SBI Mutual Fund, said.
This could also be due to an easy cancellation facility available through online modes, he added.
Meanwhile, investors continued to park their money in mutual funds, with contributions in SIPs reaching a new high of Rs 14,749 crore last month, after a brief dip to Rs 13,728 crore in April. It was Rs 14,276 crore in March.
This robust inflow has led to assets under management of SIP rising by five per cent to Rs 7.5