Mutual Fund Systematic Investment Plan (SIP) : Increase In Collection (2022)
Mutual Fund’s SIP collection jumps 31% to ₹1.5 lakh cr. in 2022 on account of higher retail participation, data with the Association of Mutual Funds in India (AMFI) showed.
- Contributions to mutual fund schemes through systematic investment plans, or SIPs, remain unfazed from the market volatility in 2022 with inflow growing to ₹1.5 lakh crore in 2022, a surge of 31% from a year earlier, due to higher retail participation.
- Systematic Investment Plan (SIP) is an investment methodology offered by mutual funds wherein an individual saver can invest a fixed amount in a chosen scheme periodically at fixed intervals – say once a month, instead of making a lump sum investment.
- The SIP installment amount can be as small as ₹500 per month and is similar to a recurring deposit.
- SIPs help to achieve financial goals by investing small sums of money on a monthly basis that eventually leads to accumulating the required corpus for reaching the goal.
- SIP’s bring in an investment discipline for the investor.
- SIPs are done in open-ended funds where the investors can invest and take out the money anytime.
- There is no fixed tenor for running SIP.
- Once the SIP tenor is fixed, it can BE stopped in between or could be continued even after the tenor by placing the request with the respective mutual fund company.
- A mutual fund is a pool of money managed by a professional Fund Manager.
- It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities.