‘SIP’ continues to be preferred! ; Peak addition of 12,693 crores in August

Bombay : Amid rising inflation and volatile stock markets, investors poured Rs 12,693 crore into various funds in August through the “SIP” (Systematic Investment Plan), a systematic alternative and disciplined in mutual funds for long-term wealth creation. This is the highest monthly investment ever made in ‘SIP’.

The figures are a sign of growing investor confidence in using the ‘SIP’ facility for disciplined investing, according to data released Wednesday by the Association of Mutual Funds India (Amphi). The flow of mutual funds through ‘SIP’ has steadily increased and since May, the flow of investments through this medium has remained above Rs 12,000 crore per month. 12,140 crores in July, 12,276 crores in June, 12,286 crores in May. Before that, the inflow in April stood at Rs 11,863 crore. In the first five months of the current financial year, an investment of Rs 61,258 crore was made in mutual funds through “SIP”. In the entire financial year 2021-22, more than Rs 1.24 lakh crore was invested through it.

Total assets under SIP management increased from Rs 5.76 lakh crore at the end of March 2022 to Rs 6.4 lakh crore at the end of August. Over the past five years, SIP assets under management have grown at an annual rate of 30%.

SIP accounts have grown steadily and become an easy and convenient means of investing, especially for retail investors and employees.

Investors don’t have to worry about market ups and downs. Since these are investments that are staggered each month, it is useful to invest in the average of the costs, taking advantage of the fluctuations in the capital markets. Above all, people develop a good habit of saving. Swapnil Bhaskar, head of strategy at financial firm Neo, said it was a useful tool to maintain discipline, especially among the younger generation.

Carol N. Valencia