According to the Association of Mutual Funds of India, 1.21 crore equity mutual fund SIP accounts were opened in 2022. At the same time, if the stock markets were depressed last year, the number of people who closed SIP accounts also increased.
A curfew was imposed in March 2020 after the severity of the Covid infection began to emerge. Due to this, the Indian stock markets experienced an unprecedented rise. After April, many stocks jumped 50%, 100%, 500% in a short period of time due to the accumulation of investments. During that period, those who invested through mutual funds got profits ranging from 30% to 100%. As a result, monthly investments in equity mutual funds (SIPs) have increased. 2021 till 2021 by stock market.
From the beginning of 2022 the situation is reversed. While the world was struggling to cope with rising prices, Putin invaded Ukraine and caused the price of crude oil to rise. It was like pouring more petrol on a burning fire. To deal with the situation, the US Federal Reserve Bank of Namur raised interest rates and stepped in to control liquidity. As a result, the dollar rose and the rupee depreciated, creating a hole in our foreign exchange reserves. Investors also took money out of stock market gains and moved into safer, higher-yielding investments.
Thus, in 2022, Indian stock markets rose by 4%. Newly greedy equity mutual fund SIP starters got impatient and closed their accounts at the loss. In that context, 1.21 crore equity mutual fund SIP accounts have been opened. It is seen as a healthy thing. Unlike before, now being digital has increased the number of SIP initiations and closings, say experts.
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According to data released by CabeMutual and the Mutual Fund Association of India, there were 6.1 crore SIP accounts as of Dec 31, 2022. The amount accumulated in those SIP accounts is worth Rs 6.74 lakh crore. Of this, 2.38 crore SIP accounts are closed within a year. That is 39% accounts. 1.43 crore accounts are closed within 2 years. Its amount is 23%. 64 lakh accounts continue for more than 5 years. The value of the amount in it is Rs.1.57 lakh crore.
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