look news india
Mumbai: As a result of volatility in the Indian stock market in October-November, it can be said from the data that the interest in equities of retail investors investing through Systematic Investment Plan (SIP) is decreasing.
The number of SIP closures in the month ending November was the third highest ever. The number of account closures is also continuously increasing as compared to the opening of new SIP accounts.
November is the fourth consecutive month in which the SIP account closure ratio has increased and has reached the third highest level ever.
If we look at the data of Association of Mutual Funds in India (AMFI), a total of 49 lakh new SIP accounts were opened in November, which is much less than 63.70 lakh opened in October. The number of account closures was 38.80 lakh in October, which has increased to 39.10 lakh in November.
Thus, the percentage of SIPs closed as against new SIPs opened in November was 79.79 per cent, the highest since 88.38 per cent in May. Amfi data shows that the SIP closure rate in May 2020 was 80.69 percent.
Amfi sources said that since the Indian stock market is currently going through a period of instability, new investors are preferring to stay away from entering the market. Even existing investors are hesitant to put in more money.
Equity mutual fund inflows fell 14.20 per cent to Rs 35,943.49 crore in November and total inflows into the fund industry stood at Rs 60,295 crore last month, compared to Rs 2.40 trillion in October. Amfi data showed that total inflows into the fund industry in November were down 75 per cent compared to October, with the number of new demat account openings in November at less than 3.2 lakh, a seven-month low.