New Delhi Investors still consider investing in mutual funds more convenient through the Systematic Investment Plan (SIP). The industry has earned over Rs 50,000 crore from investment through SIP in the first six months of 2020, which is 3 per cent higher than the year-ago period. This increasing trend contrasts sharply with the effects of COVID-19. Systematic investment plans have been a preferred way for retail investors to invest in mutual funds, as they find it easier to reduce risk at market time.
According to the Association of Mutual Funds in India (Amfi), the contribution of SIP increased from Rs 48,757 crore in the first half of 2019 to Rs 50,102 crore in January to June 2020. Grove co-founder Harsh Jain said that Indian SIP investments are showing tremendous resilience amid market fluctuations. He said that it is understandable that SIP has gained immense popularity as a medium.
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Investment reduced in last three months
However, the flow through SIP has decreased slightly in the last three months. For the first time since November 2018, the investment has come down to Rs 8,000 crore in the month of June. In this case, net investment through SIP stood at Rs 7,927 crore in June, compared to Rs 8,123 crore in May and Rs 8,376 crore in April. Earlier, it was Rs 8,641 crore in March, Rs 8,513 crore in February and Rs 8,532 crore in January.
