Mutual funds: SIP inflows in 2023 spike 22%. Experts give these reasons
- IBEF
- December 21, 2023
Investments in mutual funds through systematic investment plans (SIPs) surged to a record high in November 2023, reaching US$ 2.1 billion (Rs. 17,073 crore). Notably, this trend was not an anomaly. Interestingly, in each of the last five months starting from July 2023, the previous record of SIP inflows in mutual funds was surpassed in the subsequent month. In total, SIP inflows in mutual funds amounted to US$ 20 billion (Rs. 1,66,131 crore) in the first 11 months of 2023, ending on November 30. This reflects a substantial increase of 22.23% compared to the corresponding period last year.
The consistent rise in SIP (Systematic Investment Plan) contributions is fuelled by the enduring bull market trend, with indices like Sensex and Nifty 50 reaching new highs, motivating retail investors. Growing portfolios prompt investors to increase mutual fund investments through SIPs, creating a successive upward trend.
CEO of PGIM India Mutual Fund Mr. Ajit Menon, cites a shift in investor attitudes, increased disposable income, and robust market conditions as factors driving SIP popularity. Awareness campaigns on the simplicity of SIPs also attract new investors. Sebi-registered investment advisor Ms. Preeti Zende emphasizes SIP's key advantage investing at regular intervals. Investors recognize the risk management benefits and appreciate features like Rupee Cost Averaging. Amid India's promising GDP growth rate, SIPs remain an appealing investment choice for a diverse range of investors.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
