SIP Investment

Systematic investment plan inflows are the cornerstone for the mutual fund industry's growth, he says

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

SIP account redemptions were 36% higher than H1: Amfi

Don't exit growth-style funds as they may benefit next from a shift in investor preference

Investors can continue and add SIPs or STPs (spread over next six months rather than lump sum) into midcap funds, with a five year time horizon

The industry attributes the gradual decline in SIP ticket size to the growing penetration of mutual funds (MFs) on the back of rising ease of investment

Flows down 64% from peak amid uncertain market conditions, valuation concerns

Yet net investments in active equity schemes slump 33% in same month, shows Amfi data

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

Debt schemes account for 2% of the net inflows, passive schemes 8%

Mutual funds fail to carry high growth momentum of FY22 due to changed market conditions

The plain-vanilla SIP, however, is simple and doesn't require a lump sum

But their share in SIP AUM hasn't grown proportionately; 'regular' plans still dominate despite higher expense ratio

However, the minimum 25% exposure to each of the three market caps also makes them volatile

Massive inflows, especially in red hot markets, forces them to buy at high valuations, compromise on quality

Systematic investment plans help garner flows of Rs 12,286 crore in May, up Rs 423 crore in April.

Over past decade, strong retail flows have coincided with declining / low deposit rates, said analysts at Jefferies, who expect the deposit rates to go above the 7 per cent level with a lag

This was much lower compared to a record net inflow of Rs 28,463 cr seen in the preceding month, data from the AMFI showed on Tuesday

In the past year, large-cap funds on average have given returns of 26.45 per cent, while mid-cap and small-cap funds have given returns of 29.5 per cent and 40.4 per cent, respectively