Numbers reflect 'Indian investors' long-term approach to building wealth', says Amfi
The number of systematic investment plan (SIP) accounts being discontinued rose 7.4 per cent month-on-month to 14.19 lakh in May, despite the stellar inflow into mutual funds through the route. At the same time, the number of new SIP registration rose to 24.7 lakh last month from 19.56 lakh in April, implying fresh registration of over 5 lakh, data with the Association of Mutual Funds in India (AMFI) showed. The higher number of SIP registration than discontinuation shows investors' continued confidence in the route, DP Singh, Deputy MD and CBO at SBI Mutual Fund, said. This could also be due to an easy cancellation facility available through online modes, he added. Meanwhile, investors continued to park their money in mutual funds, with contributions in SIPs reaching a new high of Rs 14,749 crore last month, after a brief dip to Rs 13,728 crore in April. It was Rs 14,276 crore in March. This robust inflow has led to assets under management of SIP rising by five per cent to Rs 7.5
The slide in equity mutual fund inflows was offset by steady foreign inflows in domestic equities, prompting a 2.60% rise in the Nifty 50 index in May
This segment attracting such inflows despite long term capital gain being taken away in the previous month is a strong indication of what is lying ahead
In 2021-22, mutual funds (MFs) added over 4 million new investors, taking the total unique investor count to 37.7 million
Experts cite poor near-term returns, fall in investable income
Systematic investment plans are a great way to invest in liquidity is an issue. What's more, they also reduce to impact of market volatility to some extent
The SIP book has grown consistently from Rs 11,305 crore in December 2021 to an all-time high of Rs 13,573 crore in December 2022
Don't exit growth-style funds as they may benefit next from a shift in investor preference
With this, monthly SIP inflows can reach Rs 50,000 cr, says Sebi whole-time member
Net SIP investments at Rs 3,260 cr in Nov, the lowest since Oct 2021
AUM growth down 63% on account of lower investor addition, market slowdown
Investment advisors recommend the SIP route for investment in volatile asset classes to maximise the benefit of rupee cost averaging
Neither day of the month nor frequency of SIP has a material impact on returns
Investors pulled out around Rs 6,580 crore from their SIP accounts in MF schemes for the pre-festive splurge
The plain-vanilla SIP, however, is simple and doesn't require a lump sum
Investors are betting big on systematic investment plan or SIP to generate long-term wealth with monthly flow in the mutual fund industry through the route continuing to be over Rs 12,000 crore for the past four months. In fact, inflows through the SIP route touched an all-time high of Rs 12,693 crore in the month of August, a latest data with Association of Mutual Funds in India (AMFI) showed. The inflows through SIP has been growing above 12,000-crore mark since May. It was at Rs 12,140 crore in July, Rs 12,276 crore in June, Rs 12,286 crore in May. Prior to that, it was at Rs 11,863 crore in April. With this, total inflow has reached to Rs 61,258 crore in the first five months of the current fiscal. This came following an inflow of over Rs 1.24 lakh crore in the 2021-22 financial year. Investors are flocking towards the SIP route for making investments as it helps investors, especially the salaried people, make the investment process simpler. "Investors don't have to think abou
Experts say recent returns are a huge factor impacting incremental inflows into the market
The figure is 18% below monthly average for the year; However, sustained inflows into SIPs endured for 16th straight month
Brokers will not be allowed to accumulate investors' funds; investors have to verify their personal details online