Inflows through systematic investment plans (SIPs) have been hitting record highs but the momentum is not going to slow down and SIP inflows could double in the next three years, Mint quoted A Balasubramanian, managing director and chief executive, Aditya Birla Sun Life AMC, saying so.
“SIP is here to stay as a way of investing in mutual funds, as a headline number of ₹13,500 crore-plus reflects a rise in new registrations, more people coming in through mutual funds....Having said that when another asset class, like bank FDs or fixed income, becomes attractive, we might see some stoppages. But, at the end of the day it is an upward trend and SIP as an asset class would become permanent as far as mutual funds are concerned," Mint quoted him saying so.
Inflows in SIP stood at a fresh all-time high of ₹13,573 crore in December, higher than the inflows of ₹13,306 crore in November and ₹13,041 crore in October.
Inflows in SIPs have stayed above ₹13,000 crore mark for the third time in a row now. Plus, this was the 16th month when SIPs inflows were above ₹10,000 crore.
Short-term market volatility appears to have pushed retail investors to adopt a more disciplined way of investing while the long-term outlook of the market remains healthy.
SIPs are always considered an ideal route for investing for retail investors when the market outlook is hazy. SIPs are one of the best ways to accumulate wealth and the true benefits of SIPs emerge during volatile times.
Disclaimer: The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.