Increased inflows into large-cap stocks led to valuation running up
In the calendar year 2019 so far, total inflows through SIPs stood at Rs 65,880 crore.
In August, SIP inflows were Rs 8,230 crore in August, slightly down from Rs 8,324 crore in July.
Over the years, Indian retail investors have clearly made a shift in their investing attitudes and behaviour
The best investment that you can make at this point is to stay the course and protect your portfolio from yourself
Tepid earnings recovery and the uncertain outlook of companies for the next few quarters in India is further dragging markets. But there's a silver lining here.
MF industry has added 9.13 lakh SIP accounts each month on average. The average SIP size stood at around Rs 3,070 per account.
As per data with Association of Mutual Funds in India, collections via SIPs stood at Rs 8,095 crore last month - higher than January - while industry witnessed 4.96 lakh discontinuations of accounts.
Most fund managers agree that the mutual fund industry has witnessed drop both in terms of new SIP registrations as well as in the number of discontinuations
Retail investors also showed an increase in interest in mutual funds and systematic investment plans
Gross inflows high, but so are redemptions.
Mutual funds attributed the increased interest in SIPs to investor education and matured behavior of investors
MF industry has 2.16 crore SIP accounts through which investors regularly invest in schemes
Mutual funds attributed the increased interest in SIPs to investor education and robust performance of equity schemes
Both the advisor and the investor should agree upon what action should be taken when the market conditions are rough
According to data on the Association of Mutual Funds in India, the mutual fund industry witnessed inflows of Rs 4,269 crore in April as against Rs 4,355 crore a month ago, registering a drop of Rs 86 crore.
Mutual fund attributed the increased interest in SIPs to investor education and robust performance of equity schemes
From just Rs 4,000 crore per month, Sunil Singhania, CIO-Equity, Investment at Reliance Mutual Fund expects systematic investment plans to exceed USD 1-billion a month within the next year or two.
A slew of advisors have realised that SIPs are a good way to grow business. The monthly investments through SIP route in equity mutual funds rose by about 35 percent in value terms so far in this financial year.
Personal finance advisors say investors should not react to Budget-related investment tips, avoid trying to time their investments or structure portfolios based on conjectures on what could be announced.
Tax experts believe investors can gain if holding period for long term capital gains (LTCG) exemption is increased to three years from the present one year since it would provide an impetus for building a stable equity portfolio and give a longer window for adjusting stock losses if any, besides reducing holding costs.
Demonetisation is likely to accelerate reallocation of funds from physical assets to financial assets, Leo Puri, MD of UTI MF said. This was already happening earlier due to low yields.
"The company's focus on the retail distribution of Mutual Fund SIPs has started showing positive results. During this quarter, our SIP book size grew to Rs 41 crore from Rs 19 crore at the beginning of the first quarter," said Geojit BNP Paribas MD C J George.
Fund houses are pinning their hopes on the Systemic Investment Plans (SIPs) for business growth this fiscal and expect an uptick of up to 20 per cent in overall assets under management.
Compounding can help in maximizing wealth creation through SIP in mutual funds.