Corona overshadowed by mutual fund industry, SIP collection reduced to Rs 96,000 crore in FY21

Every sector has been affected due to the Covid-19 epidemic. At the same time, the effect of Corona was also seen on the Mutual Fund Industry. In the financial year 2020 – 21, the mutual investment’s systematic investment plan i.e. SIP collection decreased by four per cent to 96 thousand crore rupees.

Gopal Kavali Reddy, Head of Research, Fires, said that factors such as the success of the coronavirus vaccination in the coming years, better economic scenario than expected, and higher-income will have an impact on SIP. He said that apart from positive indicators like GST collection, auto, and residential sales, intermittent lockdowns, as well as IIP and inflation data, could affect the economic progress during the current financial year.

It said that a total of Rs 96,080 crore was collected through SIP during the last financial year ended in March, whereas it raised Rs 1,00,084 crore from it in 2019-20 last year. These figures have been made available by the Association of Mutual Funds in India.

During this period, the flow in SIP averaged Rs 8,000 crore per month for the year ended in March. SIP contribution to the mutual fund industry has been increasing continuously during the last few years. In 2016-17, it was Rs 43,921 crore, while in 2017-18 it reached Rs 67,190 crore and in 2018-19 it reached Rs 92,693 crore. After this, the contribution of SIP touched a figure of one lakh crore rupees in 2019-20.

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