SIPs (Systematic Investment Plans) continued to be the most preferred investment choice among retail investors who were searching for the right mutual fund schemes to invest, in June 2018.
According to data given by AMFI (Association of Mutual Funds in India), SIP flows performed impressively hitting a record high value of 7,554 Crore Rupees in June 2018, which is slightly higher than the 7,304 crore Rupees collected in the previous month.
AMFI data shows that the mutual fund industry has collected a total amount of 21,548 crore Rupees from April 2018 to June 2018. This amount is actually about 58 percent more than 13,597 crore Rupees collected during the same period last year.
Based on the AMFI data, the mutual fund industry added an average of 9.83 lakh SIP accounts during the first quarter of the fiscal year 2018-19, with an average value of about 3,300 Rupees per SIP account, in comparison with 3,250 Rupees last year. At present, domestic mutual funds have nearly 2.29 crore active SIP accounts.
MF houses have much-admired the increase in average SIPs inflow. According to MFs, the main reasons for the increased interest in Systematic Investment Plans are investor education and powerful performance of equity schemes. The two things are encouraging investors to take the SIP route.
The investor education campaigns such as “mutual funds sahi hai” and “Jan Nivesh” launched by AMFI and MF industry players during the past five months have played a key role in increased interest in investment products like mutual funds, according to Money Control.
Systematic Investment Plans allows investors to make a fixed amount of investment in a mutual fund scheme periodically at pre-determined intervals instead of investing a lump-sum amount.
SIPs are hassle-free and convenient mutual funds investment method which has been gaining popularity among Indian investors as it helps in rupee cost averaging and for disciplined investing, without worrying about the timing and volatility of the market.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]