64% SIPs from smaller cities: ETMoney study – Times of India

MUMBAI: A majority of mutual fund investors who put their money through the systematic investment plan (SIP) are from smaller cities compared to the top 10 metros and other large business hubs. From about 59 per cent in 2017, contribution through SIPs has now increased to 64 per cent, a survey by ETMoney showed.
“SIP inflows are coming from across the country and one state each from all the four corners finds a place in the top five states with the highest SIP contribution. Maharashtra at 20.6 per cent, Uttar Pradesh at 11.2 per cent, Delhi at 9 per cent, West Bengal at 8.1 per cent and Karnataka at 5.7 per cent currently lead the pack as states with the highest SIP inflows,” the survey results by ETMoney showed. ETMoney is a leading app for financial services in India.

The share of money being invested via SIPs is also going up every year in different income groups, the survey showed. This indicates that people are trusting SIPs even more and continue to hike their contribution to it each year with an increase in their income. In the Rs 5-10 lakh income group, the share of SIPs is over 6 per cent in 2021, it said.
The survey also points towards improvement in 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 per cent in 2017 to 56 per cent in 2018 to 61 per cent in 2019 and 68 per cent in 2020, the ETMoney survey showed. “The report also indicates a constant rise in the SIPs started by investors in the 30 and above age group,” it said.