SIP Mutual Funds

Banking mutual funds have lost up to 6 per cent in the last week following the collapse of Silicon Valley Bank and Signature Bank that dented investors' sentiment in the banking and financial services space. The failure of the two US-based banks sent shockwaves across the global financial system and weakened the sentiments in the banking sector in India too, wherein shares took a beating and declined in the range of 3-13 per cent in the week under review. However, experts believe that the direct impact on the Indian banking sector was negligible to low. The incessant selling in the bank stocks is clearly reflected in the banking sector mutual funds, as evident from the short-term performance returns of the 16 schemes under the category. Of the 16 banking sector mutual funds, all of them have given negative returns to investors in the range of 1.6 per cent to 6 per cent in the week ended March 17, according to an analysis of data compiled by ACE MF Nxt. So far this year, these fund

Investors take a shine to the systematic investment route for equity investment

Equity mutual funds attracted Rs 15,685 crore in February, making it the highest net infusion in nine months despite significant volatility in the stock markets. This is higher than Rs 12,546 crore inflow seen in January and Rs 7,303 crore reported in December. February also saw the 24th straight month of inflows into equity-oriented mutual fund schemes, data with the Association of Mutual Funds in India (Amfi) showed on Friday. Backed by healthy inflow into equity funds, the mutual fund industry saw an inflow of Rs 9,575 crore in February. As per the data, the total net flows in equity schemes stood at Rs 15,685 crore. This was the highest level since May 2022, when equity funds attracted Rs 18,529 crore. Investors continue to invest in a disciplined manner, countering the volatility in stock markets arising out of Foreign Portfolio Investor (FPI) outflows, Gopal Kavalireddi, Head of Research at FYERS, said. Moreover, contribution from SIP (Systematic Investment Plan) has been .

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

AUM growth down 63% on account of lower investor addition, market slowdown

Until end-November, 23 million new SIP accounts were registered, compared with 22 million during the same period in 2021 - a growth of 6 per cent

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

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

But overall AUM has increased a mere 6%

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

Investors pulled out around Rs 6,580 crore from their SIP accounts in MF schemes for the pre-festive splurge

SIP inflows surged 2 per cent month-on-month (MoM) in September to Rs 12,980 crore, according to the latest data released by the Association of Mutual Funds in India (Amfi).

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

Experts say recent returns are a huge factor impacting incremental inflows into the market

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

The industry has seen a flurry of applicants in the past few months, including Samir Arora-led Helios Capital and Rakesh Jhunjhunwala's Alchemy Capital among others

Eighty six per cent of large-cap equity schemes of mutual funds underperformed the indices during the one year to June 2021, which witnessed one of the strongest rallies in the markets, a report said on Monday. The scenario was not different in mid-cap and small-cap schemes of MFs either, which witnessed 57.1 per cent of the schemes trailing the movement in the respective benchmarks, S&P Indices Versus Active (SPIVA) said in its half-yearly report. Markets have had a phenomenal run since April 2020, fuelled by easy liquidity conditions created the world over following the pandemic, and concerns have been raised about the financial market euphoria being de-linked from actual economic activity on the ground. The report said over longer horizons as well, majority of the actively managed funds in India underperformed their respective benchmarks. Over a five-year period ending in June 2021, 82.7 per cent of large-cap, 76.2 per cent of small/mid-cap and 69.6 per cent of equity linked ...