Why are so many people investing into mutual funds currently?
Smart Money April 16, 2020
SIP Inflows touch all time high despite market decline in March 2020
Investments in mutual funds through SIP touched an all-time high of ₹ 8,641 crore in March 2020 as per latest AMFI data. This, despite an over ~30% decline across the broader stock market during the month. Retail investors continued to invest in the mutual funds through systematic investment plans (SIP)- adding more folios and AUM particularly in equity mutual funds.
FY21 also witnessed total inflow through SIP investments crossing ₹ 1 trillion mark during the 12 month period vs ₹ 92,693 crore in FY20.
SIP inflows FY21 vs NIFTY
What does one infer from the steady increase in SIP AUM by retail investors?
- Systematic investment plans is also about maintaining discipline while investing. A steady increase in monthly SIP investments indicates growing discipline among retail investors.
- In addition, retail investors seem to have used this crisis and the market correction as an opportunity. Continuing with your SIPs helps average investments and improve your overall returns through compounding, once the markets recover.
So, have you made the most of this market correction?? This is a good time to begin your SIP investments for long term financial goals.
other blogs
Smart Lifestyle Smart Money March 29, 2023
Buying Vs. Renting Home
A young couple named Rahul and Simran had just gotten married. They were excited to start their new life together and were faced with the big decision of whether to buy or rent a house. Rahul believed in owning a home, while Simran preferred renting. They both had valid points, making it challenging to reach […]
By Team LXME
Smart Career Smart Lifestyle Smart Money March 23, 2023
5 flexible ways for students to make money
Being a student, growing into a young adult can be a hard transformation. Learning about responsibilities and how to take care of yourself is not a piece of cake. It is a tough and lengthy process. However, having money and becoming self-sufficient can ease this whole process. It can help you pay for expenses like […]
By Team LXME
Smart Lifestyle Smart Money March 22, 2023
Health Insurance for Women
Do you know, what is the rate of medical inflation in India?🤔 Currently, As per various reports online, the medical inflation is more than 10%😵💫😵💫 So, do you believe that someone will be able to pay for medical expenses if a medical emergency occurs? They may, however, by utilizing their investments, savings, and other resources. […]
By Team LXME