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The mutual fund industry recorded an inflow of Rs 8,246 crore in October 2019 through systematic investment plans (SIPs). The October 2019 SIP inflow increased by 3.2% from what it was in October 2018. The rallying of markets, economic boosters, and improving global factors are the possible reasons behind the increased SIP inflow last month.
With the October inflow, the overall SIP inflow for the current financial year touched Rs 57,607 crore. The SIP inflow in the previous fiscal year, in the period between April and October, was Rs 52,472 crore. The seven-month SIP contribution has increased by Rs 5,135 crore this financial year.
Mutual fund investors prefer SIPs over a one-time lump sum investment as they allow investing a small sum periodically. The frequency of investment can be weekly, monthly, quarterly, bi-annually, or annually as per the investors’ preference. Also, a SIP can be initiated or terminated anytime; thus, giving investors much-needed flexibility.
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Mutual fund industry, despite recording an increase of 3.2% in October 2019, was not able to outperform the inflow of September 2019. However, the difference is marginal. The SIP inflow of April, May, June, July, August, September, and October 2019 has been Rs 8,238 crore, Rs 8,183 crore, Rs 8,122 crore, Rs 8,324 crore, Rs 8,231 crore, and Rs 8,263 crore respectively.
The economic and growth boosters announced in September led to the rallying of the stock markets. The BSE Sensex gained around 4% in October 2019. The NSE Nifty and BSE Sensex regained their critical levels of 12,000 and 40,000 points respectively. This development has attracted both domestic and foreign portfolio investors (FPIs). fun
Mutual funds have been one of the most preferred investment options in recent times as they offer flexibility. The SIP inflow is on the rise in recent times. The SIP inflow in the previous financial year was about Rs 92,700 crore while it was nearly Rs 67,000 crore in 2017-8. With five months to go in this fiscal year, the SIP inflow is expected to exceed last year’s tally.
For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in
Engineer by qualification, financial writer by choice. I am always open to learning new things.
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