Mumbai: In view of the increasing number of systematic investment plan (SIP) closure in mutual funds, the reason for the shutdown of SIP accounts in January was a direct plan, but in February, the opposite results have been seen. Statistics show that most regular SIP accounts have been closed.
Regular plans SIP accounts, whose market conditions are expected to be more flexible. About 8 lakhs have been closed in February. This is the first monthly decline in the last three years. In February, the number of SIP accounts active in mutual funds declined by 10 lakhs to 10.17 crore. About 80 percent of these closed accounts were regular schemes of SIPs.
In January, the net decline in SIP accounts was expected to come from a direct plan or self-investment segment. The net numbers of direct scheme SIP accounts closed in January were 9 lakhs, while the number of regular plan accounts increased by four lakhs.
Mutual fund schemes are mainly of two types, direct plans and regular plans. In which the expenditure structure varies. The direct plan is a cheap option and is available for membership through online platform. Regular plans are comparatively expensive due to commission components and are sold to investors mostly through banks, wealth platforms and individual distributors.
Significantly, in recent years, the stock markets have rapidly gained an influx of investors and there has been a sharp increase in opening SIP accounts in the first half of 2024. There are about one crore unique accounts in the mutual fund industry where investors have started investing in the last one year. This part is about 20 percent of the total investors in the mutual fund.
The post mu Most of the regular plans in the funds closed in February, SIP accounts first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
