Jun 10, 2018 3 min read

MF Industry Cheered! Rs 7000 Cr Parked via SIP in April 2018

Investors investing more via SIP. Read to know why people are turning towards the SIP route of investment.
In past few months, the Mutual fund industry has been perked up as the investors are pouring their love towards the markets as well as the funds. They have accumulated close to Rs 7,000 Cr through Systematic Investment Plan (SIP), which is 57% more than that of last FY 2017-18.

Cumulatively, the people have invested approximately Rs 67,000 Cr in the mutual funds via SIP in the last financial year. And, the investment is Rs 23,270 Cr more than the previous fiscal statistics, as per a report of the Association of Mutual Funds in India (AMFI).

Why Are People Moving Towards SIP Investments?

People are trying to meet their goals, by a small amount of investment every month. This is because, the SIP investments are neither too heavy on the pocket as one may invest in with a minimum amount of Rs 500, nor it hampers one’s financial requirements. Nowadays, many mutual funds are even offering Rs 100 as an investment through SIP, and this is the obvious reason that people are praising it.

There are many benefits a mutual fund offers when you invest via SIP. You will get to know the power of compounding, once you start investing and that is also for a long-term. The performances of schemes and the risk of the stock market are turning more and more investors towards mutual funds.

As we discussed with our experts at MySIPonline, people are becoming more aware of the mutual funds in the past few years because the SEBI, as well as the industry players, have taken the initiatives of educating investors. They are providing all the details to investors regarding mutual funds, its returns, and risk associated.

The retail investors are taking more interest in mutual funds and investing through SIP because it helps them in earning good without taking the pressure of timing the market. In SIP, you invest amount when the market is high as well as when the market is low. This will keep the average cost of investing low and helps you in fetching more units at downside market and robust returns when the market performs well.

New Rule of SEBI:

In the recent months, SEBI has also asked the mutual fund companies to reduce the expenses to 5 basis points from 20 basis points. This has also shown the good impact on the mutual fund industry as it will create a profitable environment among the investors.
The investors are now moving away from the traditional investing methods of gold, real estate, FDs and RDs because mutual funds are offering more benefits, and also you can withdraw your amount whenever needed.

As per the latest data, the total amount collected in April 2018 is Rs 6,690 Cr against Rs 4,269 Cr collected in the April 2017. The total number of SIP accounts, where investors are investing regularly in the Indian mutual fund schemes stood up to 2.16 Cr.

All this tells that people are moving towards mutual funds through the path of SIP. It is a vehicle of investment, where you can make regular investments with a small amount, preferably on a weekly, monthly or quarterly basis. For more such informative write-ups, stay turned with us. You may also seek help from our experts regrading your investments in mutual funds by connecting with them via a call or email.

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