Mutual Fund investment via SIP rises to Rs 8,246 crore
The mutual fund industry garnered Rs 8,246 crore through systematic investment plans (SIPs) in October, a rise of 3.2 per cent as compared with the year-ago period, amid rally in the stock market following a series of reform measures taken by the government.
New Delhi: The mutual fund industry garnered Rs 8,246 crore through systematic investment plans (SIPs) in October, a rise of 3.2 per cent as compared with the year-ago period, amid rally in the stock market following a series of reform measures taken by the government.
With this, the total SIP contribution in the first seven months of the current financial year rose to Rs 57,607 crore as compared with Rs 52,472 crore in April-October 2018, according to the latest data from the Association of Mutual Funds in India (Amfi).
SIP continued to be the preferred route for retail investors to invest in mutual funds as it helps them reduce market timing risk, the industry body noted.
According to the data, SIP contribution in October stood at Rs 8,246 crore, which was 3.2 per cent higher than the Rs 7,985 crore clocked in the same month last year.
However, the 44-player mutual fund industry, which mainly depends on SIPs for inflows in equity funds, saw a marginal drop in SIP investments as compared to the preceding month.
In September this year, the industry had collected Rs 8,263 crore. It had garnered Rs 8,231 crore in August, Rs 8,324 crore in July, Rs 8,122 crore in June, Rs 8,183 crore in May and Rs 8,238 crore in April.
Inflows into SIPs have averaged about Rs 8,000 crore for the 12 months till October.
"The positive inflow indicates building up of a positive investment trend. Series of steps taken by the government in the recent times to boost domestic economy had improved sentiments and helped the markets to surge.
This has helped investors slowly gain confidence and get back to investing," said Himanshu Srivastava, senior analyst, manager research, Morningstar Investment Adviser India.