For Quick Alerts
For Daily Alerts

Investors Keep The Faith In SIPs


Despite salary cuts and job cuts, the inflows into equity mutual funds and SIPs was rather steady in the month of April 2020. Systematic Investment Plans or SIPs continued to attract decent investment.

SIP inflows were pegged at Rs 8,376 crore for the month of April from Rs 8,641 crore in March, 2020, which is a marginal decline.

Inflows into equity mutual funds dropped to Rs 6,108 crore in April amid uncertainty triggered by the COVID-19 crisis.


Investors keep the faith in SIPs

Despite the covid 19 infection, lockdown and salary cuts, SIP inflows have barely reduced. Investors continued to have faith in equities, which is a sign of immense maturity that is required when investing in equity and equity mutual funds.

Investors Keep The Faith In SIPs

In fact, if an investor discontinues now, it would be a big harm that they would be doing to their portfolio, given the fact that NAVs are probably near the lowest levels, we have seen in years. It makes sense to invest more at these levels and sell when the markets are at peak. Of course, this is only possible if investors have that kind of income stream, given the current economic chaos of salary cuts and job losses.

It's not only a good time to continue investment in equity mutual funds, but, to also increase the size of SIPs, if one can afford that. In fact, it may not be a bad time to also switch from debt mutual funds to equity mutual funds, as in the longer period of say 3-5 years, you might end-up with stupendous returns.

Read more about: mutual fund mutual funds
Story first published: Saturday, May 9, 2020, 12:22 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more