The number of Systematic Investment Plans (SIPs) in mutual funds has more than doubled to 134 lakh in two-and-half years, primarily on account of increased awareness among investors and buoyancy in equity markets, Parliament was informed on Friday. A Systematic Investment Plan is an investment vehicle that allows investors to invest in small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.
As of October 31 this year, the number of Systematic Investment Plans in mutual funds in India was 134.5 lakh, Minister of State for Finance Arjun Ram Meghwal said in a written reply to the Lok Sabha. SIPs increased from 60 lakh as on March 31, 2014 to 90.2 lakh at the end of March 31, 2015. They increased further to 116.3 lakh at the end of the last fiscal. Meghwal attributed the higher number of SIPs to rising awareness among investors, focus on other than top 15 cities by mutual fund houses and general buoyancy in stock markets.