SIP Investments collects nearly Rs. 50,000 crores in 2020
The mutual fund industry has observed growth in investments through the SIP plan. In the first six months of FY20, the SIP investments raised over Rs. 50,000 crores. It increased by nearly 3% from the year-ago period.
As per the AMFI report, the SIP enrichment between January and June 2020 rose to Rs. 50,102 crores. In 2019, it had reported Rs. 48,757 crores.
On the other hand, in the past six months, the SIP inflows reported nearly Rs. 8,350 crores. Furthermore, the SIP investors in India showed flexibility among the ups and downs in the market.
According to the reports, in June 2020, the SIP net expenses stood at Rs. 7,927 crores which against Rs. 8,123 crores in May and Rs. 8,376 crores in April 2020.
Furthermore, in January, the SIP investments stood at Rs. 8,532 crores. Moreover, in February and March, the investments stood at Rs. 8,513 crores and Rs. 8,641 crores, respectively.
According to the expert analysis, the monthly investments through SIP slowly decreased due to strain on cash flow and incomes experienced by several investors because of the COVID situations.
As of July 2020, the MF industry had experienced 3.23 crore SIP accounts. Moreover, investors regularly invested in different schemes.
The mutual fund industry has witnessed an investment of over Rs. 42,400 crores in equity-oriented schemes in the first six months of the year.
As per the SEBI norms, the Systematic Investment Plan allows investors to invest in small amounts regularly rather than a lump-sum payment. Investors should invest weekly, monthly, and quarterly.