In November, fintechs added 1.3 million new SIPs for mutual funds
1. Fintech Boom in Mutual Fund Investments:
Fintech startups, including Groww, AngelOne, and PhonePe, are becoming major players in distributing mutual fund products. In November 2023, they collectively attracted almost half of the new systematic investment plans (SIPs) opened, as per exclusive data shared with ET by asset management companies.
2. Impressive Numbers:
The Association of Mutual Funds of India (AMFI) reported a remarkable surge with over 3 million new SIPs in November 2023. Fintech platforms played a significant role, accounting for around 1.3 million of these new SIPs. Groww alone added over 700,000 new SIPs, AngelOne contributed more than 200,000, and PhonePe generated over 120,000.
3. Other Players in the Mix:
While the mentioned fintech giants led the pack, Paytm Money, the wealth management arm of Paytm, also made a substantial impact with 76,000 new SIPs. Additionally, ETMoney, a subsidiary of Times Internet, added 60,000 SIPs in November.
4. Growth in Fintech Transactions:
Ujjwal Jain, CEO of Share.Market, PhonePe’s wealth management arm, highlighted the impressive growth in SIP transactions on their platform over the past two years. This underscores the increasing popularity of fintech platforms in facilitating mutual fund investments.
In essence, the article reflects the rising influence of fintech startups, showcasing their pivotal role in driving the growth of mutual fund SIPs, a trend that aligns with the broader digital transformation in the financial sector.
