Indian Mutual
funds garner Rs. 7,000 crore via SIPs in April 2018
Retail investors are
increasingly opting for systematic investment plans (SIPs) in mutual funds as
the industry has garnered close to Rs. 7,000 crore through this route in April,
2108 a surge of 57% from the year-ago period.
This followed
investments of over Rs. 67,000 crore through SIPs by the fund houses in 2017-18
and more than Rs. 43,900 crore in the preceding fiscal, as per the Association
of Mutual Funds in India (AMFI).
The higher interest in
SIPs could be attributed to robust performance of equity schemes and investor
education initiatives taken by industry body Amfi, Edelweiss Mutual Fund CEO
Radhika Gupta said.
SIPs have been the
preferred route for retail investors to invest in mutual funds as it helps them
reduce market timing risk, she added.
Further, she said that
investors are not showing interest in investing into traditional asset classes
like real estate and gold and preferring financial assets such as MFs.
Moreover, SEBI’s new
guidelines of reducing the MF expense ratio to 0.05% (5 basis points) from 0.2%
(20 basis points) will create a lucrative environment for investing through the
SIP route in the market.
As per the latest data,
the industry garnered about Rs. 6,690 crore in April through SIPs as against Rs
4,269 crore collected in April last year.
MFs have 2.16 crore SIP
accounts through which investors regularly invest in Indian mutual fund
schemes.
SIP is an investment
vehicle that allows investors to invest in small amount periodically instead of
lump sum payment. The frequency of investment is usually weekly, monthly or
quarterly. It is similar to a recurring deposit where investors deposit a small
or fixed amount every month.
No comments:
Post a Comment