SIP a saviour for mutual fund net inflows in FY17 so far

Even as India Inc.’s sales growth slows down and profitability perks up in Q2 the mutual fund investors are showing lot of confidence in the equity markets and are preferring to invest via SIP (Systematic Investment Plan). 

The trend is quite visible and Indians are keen on taking the SIP route for their investments in equity markets. 
If the AMFI data is to be referred, the trend suggests that less amount of money is coming into arbitrage funds and even lesser is coming in the form of lumpsum amount. 

There is almost a 50 per cent drop in investors' participation in mutual funds when it comes to parking money in arbitrage funds and in equity funds via lump sum investments.

At the same time the growth in SIP investing continues to impress, with the first half of FY2017 recording a net inflow of Rs 20,150 crore when compared to net inflows of Rs 13,992 crore for the first half of FY2016.

With Sensex drifting lower and expected to trade sideways in coming months, SIP investors may stand to gain as the sideways market movement will allow them to accumulate more units of their chosen mutual fund scheme at a reasonable bargain.