AMFI released its monthly data on the state of affairs of the mutual funds in India for the month of October. From the data released, there came a wealth of information regarding Systematic Investment Plans or SIPS.
It was seen that the SIP methodology of investment generated the most inflow for the month of October, crossing the Rs. 13,000 crore mark.
Even though there is strong market volatility and plenty of global factors that are affecting the stock markets, the domestic investor has shown a lot of resilience and stuck to the SIP mode of investment, making regular contributions monthly.
The chief executive of AMFI said that there was an overall growth in Assets Under Management and folios as well. Moreover, there were 9.52 lakh SIP accounts added to the already existing number of SIP accounts.
If you wish to start your SIP investment today, you can do so with Money Assist.
When you invest in mutual funds in India, you can do so either through a lump sum investment or through an SIP. An SIP is a methodology of investment. You can invest money periodically, say monthly, and the amount can be a minimum of Rs. 500.
The debt mutual funds saw a net outflow of investment, as investors pulled out close to Rs. 2,818 crore in October, and Rs. 65, 372 crore in September. This has to do with the fact that during this period interest rates were hiked considerably. Hence, people preferred to invest in bank fixed deposits instead of risking their investments in mutual funds.
Given the state of affairs in mutual funds in India, you will probably be wondering why people are investing via SIPs. This is because when markets fall, you will be paying less for the units and receive more units than when the market conditions are on the rise.
Moreover, the SIP form of investment can be as low as Rs. 500 or as high as you would like to go. So almost any investor can participate in SIPs. Also, you can adjust your SIP amount as and when you like. SIP investment is a systematic and dedicated way of investing as there is no emotional decisions involved. That is why people prefer to invest through SIPs.
If you are keen to start investing in mutual funds in India and have chosen the investment route as SIP, we encourage you to invest through Money Assist. As one of Kolkata’s best mutual fund agents or brokers we can help you in your quest to appreciate capital.
