The stock market has given very good returns in the last 3 years. During this period, many stocks have proved to be multi-baggers. Excited investors in the market are also doing SIP in large numbers. The investment coming in the market through SIP is constantly increasing. It is estimated to touch the figure of Rs 1 trillion in the coming years.
Experts believe that Monthly Systematic Investment Plan (SIP) has given a lot of support to the market and this SIP can be a big medium to create wealth in the stock market. SIP investment can increase manifold in the coming days.

Looking at the growth of Indian markets, new ambitions are emerging among investors through SIP,withn which the target is to achieve an impressive Rs 1 trillion in monthly fund flow through Systematic Investment Plans (SIP) by the year 2030. This figure seemed very big earlier, but looking at the kind of fund flow that is coming into the market from SIP in the last few months, it seems achievable. This is being strengthened by a combination of better education of investors, technology development, and a growing middle class eager to build their wealth.
 

SIP made easy

Systematic Investment Plans (SIPs) have changed investment habits in India. Instead of making lump sum investments, SIPs enable individuals to regularly contribute a fixed amount, be it monthly, quarterly,y or annually, to mutual fund schemes, mostly in equities.

SIPs allow investors to average out the cost of their investments, which helps mitigate the effects of market volatility. It is a way to invest in a disciplined way. SIPs have become easier to do due to the advent of digital platforms. The

Indian mutual fund industry has experienced significant growth by the end of 2024. According to the Association of Mutual Funds in India (AMFI), the total number of systematic investment plan (SIP) accounts under management reached 10.12 crores by October 2024 and this number is expected to increase further. For the financial year 2024-25, the total SIP contribution within the first seven months of the financial year was around Rs 1.59 lakh crore.

Monthly SIP investments have shown consistent improvement on a month-on-month basis. For instance, SIP investments in April 2024 were Rs 20,371 crore, while the October figures rose to Rs 25,323 crore, clearly indicating a steady increase in the amount Indians are investing monthly. Given the current growth cycle, it is estimated that an additional Rs 1.4 to Rs 1.5 lakh crore will be invested. Rs 1.5 lakh crore can be added through SIPs between November 2024 and March 2025.

This phenomenal growth brings us closer to the aspirational target of achieving Rs. 0.5 trillion in monthly SIP investments by the end of 2025. As a result, expectations have strengthened about reaching Rs. 1 trillion in monthly SIP investments by the end of 2030.