- Smaller cities account for 64 per cent of SIP inflows in 2021
- Share of income being invested through SIPs increasing yearly
- More than 70% of investors now don’t stop SIP once started
- Investors have got an average return of over 16% in the last 5 years
- Own versions of hybrid portfolios being made by investors
New Delhi, December 21, 2021: On crossing the milestone of processing over 1 million SIPs every month, ETMONEY releases the SIP Insights Report 2021 that looks at a 5-year trend analysis of investor’s behavior towards SIPs in India. The report shows that India’s smaller cities are now leading the charge with 64% contribution of SIP inflows coming outside of top 10 cities that include metros and big business hubs like Bangalore and Hyderabad in 2021. There has been a gradual increase in SIP inflows from smaller cities with its share going up from 59 per cent in 2017 to 64 per cent in 2021.
The ETMONEY SIP Insights Report 2021 shows that SIP inflows are coming from across the country and one state each from all the four corners find a place in the Top 5 states with highest SIP contribution. Maharashtra at 20.56%, Uttar Pradesh at 11.20%, Delhi at 9.03%, West Bengal at 8.08% and Karnataka at 5.65% currently lead the pack as states with the highest SIP inflows.
The share of money being invested via SIPs is also going up every year in different income groups. This is a trend India can be proud of as it shows people are trusting SIPs even more and continue to increase their contribution to it each year with an increase in their income. In the ₹5-10 Lakh income group, the share of SIPs is over 6% in 2021.
The report highlights improvement in not just the scale but also the investment habits. Over 70 per cent of investors are now not stopping their SIPs for at least a year. This number has been growing continuously from 49% in 2017 to 56% in 2018 to 61% in 2019 and 68% in the last year.
The report also indicates a constant rise in the SIPs started by investors in the 30 and above age group. The increased accessibility due to the massive digital push and ease of getting started due to innovative product offerings by digital platforms like ETMONEY is enabling investors who were late in starting their investment journey to finally take the plunge.
Investors are also showing increased awareness and interest by taking more control of their investments. They are opting for a mix of equity and debt funds and making their own hybrid portfolios by combining them accordingly rather than going for hybrid funds.
Speaking on the report, Mukesh Kalra, CEO, ETMONEY said, “ETMONEY has crossed the milestone of one million active SIPs on the platform. We took this opportunity to look at different trends and analysis to understand the evolution of the investment behavior of Indians and came up with the ETMONEY SIP Insights Report 2021. It is heartening to see smaller cities taking a lead when it comes to overall SIP contribution and investors increasing their share of income being allocated to SIPs investments each year. We are now looking forward to witnessing the next phase of evolution in investments and wealth management ecosystem of India. And geared up to again be at the forefront of innovations”.
ETMONEY SIP Insights Report 2021 points out that staying invested through SIPs has been rewarding for investors as the SIPs have averaged out the market cycles and generated an average 16 per cent returns in the past 5 years.