Mutual fund investment raise ₹50,000 crore through SIP in H1 2020

Investors tend to prefer SIP(Systematic Investment Plan) the chance to invest in mutual funds, as the firm has earned over 50,000 crore.

Investors tend to prefer SIP(Systematic Investment Plan) the chance to invest in mutual funds, as the firm has earned over 50,000 crores through this path in the dominant six months of 2020, increasing 3% from last year’s period.

This growing pattern distinguishes between acute market fluctuations and issues concerning the influence of COVID-19.

Advertisement

SIP has become the likely path for retail investors to take a role in mutual funds as it lets them scale back market timing risk.

Harsh Jain, co-founder of Groww, stated that Indian SIP investors are showing immense resilience amidst the ups and downs in market. Clearly, SIP as a medium has gained immense popularity, he added.

Subsequent SIP investment

SIP investment in January to June 2020 rose to ₹50,102 crore from ₹48,757 crore in the first half of 2019, as per the Association of Mutual Funds in India (Amfi).

Inflows into SIPs have averaged about ₹8,350 crore in the past 6 months. However, Inflows by SIP have decreased in the last three months. Investment fell below 8,000 crore for the first time since November 2018 in the month of June.

Net investment through this path was 7.927 crore in June compared to 8.123 crore in May, 8.376 crore in April.Previously there were 8,641 crore in March, 8,513 crore in February and 8,532 crore in January.

Studies suggest that the downturn in the monthly SIP allocation may be attributed to the pressure on cash flows and profits faced by many investors related to the COVID case.

Actively, mutual funds have 3.23 crore SIP accounts in which investor holds actively in Indian mutual fund. Experts also said that once the economic position improves, the flow should also pick up.

Over ₹42,400 in equity-oriented schemes were invested in the first six months of the year by the 45 member mutual fund sector, which relies primarily on SIP for inflows.

Systematic Investment Plan is an investment option that permits investors, rather than lump sum payments, to invest on a regular basis in small amounts.

Investment frequency is usually weekly , monthly or quarterly. It is a repeated deposit where investors make a flat deposit each month. It is the same.