SIP(Systematic Investment Plan)are not to be taught to anybody in this digital world! AMFI’s(Association of Mutual Funds of India)campaign “Mutual Fund Sahi hai” prompted investors to know about sip’s in detail.
From the past 3-4 years investors gets awareness on the benefits of sip’s. It is recommended to manage volatility especially in equity markets.
As sip can be done even with small amounts, investors are coming forward to invests much morer seeing the recent rally in the past 1-1.5 years.
Even though Covid-19 worries investors to some extent, some investors sit tight and continues their sips irrespective of the market movements. As a result, their portfolios saw stellar returns when compared to investors sip cancelled portfolios.
Those brave investors benefits from deeper corrections and enjoys rupee cost averaging from the market lows in March 2020. They share their experience with their friends and relatives which indirectly prompts new investors to come and invest in sips further!
This is a welcome sign to see mutual fund industry to raise sip inflows to 10,351 crores as per AMFI data in September 2021. As per AMFI, SIP Assets under Management(AUM)are at 5.44 Trillion with more than 4.48 crore sip accounts.
This is possible only with word-of-mouth publicity by the experienced investors during the market crash. As they see huge returns than any other investment avenue returns, they shares their experience with friends which indirectly make new investors enter the market.
Recent rally also showed positive impact as investors are expecting major correction as the markets are heading in single phase(Bull run)only till. There is a strong belief that their sips will fetch more units if the market crashes suddenly! In equity market anything would be happen at any time! so they are sticking to sips assuming that they would be benefitted from rupee cost averaging during market corrections.
SIP inflows shows investors confidence on the approach to equity investing in a disciplined way which is a good sign to economy!