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Inflows into mutual funds through systematic investment plans have jumped 32 per cent to ₹1,35,864 crore in the last 11 months of this year against ₹1,02,711 crore logged in same period of 2021.
Due to the unrelenting rally in the equity market and concerted efforts of mutual funds, the number of live SIP accounts has touched a new high of 6.05 crore as existing investors are experiencing the power of their investment compounding in the volatile market.
The steady inflows through SIP have salvaged the equity markets when foreign portfolio investors redeemed their investments this year.
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Additional layer of broadly defined investment themes introducedDespite positive inflows in the last two months, FPI had registered a net outflow of ₹1.22 lakh crore in equity so far this year against an inflow of ₹25,752 crore logged in 2021.
The SIP assets have surged 18 per cent last month to ₹6.83 lakh crore from ₹5.78 lakh crore in April despite all the upheavals in the market.
Power of SIP
Kalpen Parekh, Managing Director, DSP Investment Managers, said investors at large have understood the power of SIP in equity to generate inflation-beating return, but there is lot of scope to attract more investors.
Explaining the advantage of mutual fund investment with his own experience, Parekh said he used to gift his sister with equity units on Raksha Bandhan and these investments are worth a couple of crores now.
Nilesh Shah, Managing Director, Kotak Mahindra Mutual Fund said the inflows through SIP will witness faster growth as mutual funds are deepening the penetration with the help of market regulator SEBI.
In top cities, he said many employers are rewarding their domestic helpers and drivers with equity SIP to inculcate saving habits.
Sahyog
Aditya Birla Sun Life AMC recently launched Sahyog, an initiative targeted at improving the financial health of support staff through steady, long-term investments.
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KFin Technologies’ proposed ₹1,500 crore IPO will open for retail investors on MondayA Balasubramanian, Managing Director, Aditya Birla Sun Life AMC said Sahyog is an attempt to empower others and bring financial inclusivity for everyone in the society.
It presents an opportunity to improve the financial well-being of support staff and add value to them and their families’ lives by starting an SIP for them, he added.
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