The Rise of SIP Investors
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, MF - Editorial, Mutual Fund
Not too long ago, the Indian stock markets danced to the tunes orchestrated by foreign institutional investors, whose investment decisions were swayed by global factors, contributing to heightened volatility in the Indian stock markets
Not too long ago, the Indian stock markets danced to the tunes orchestrated by foreign institutional investors, whose investment decisions were swayed by global factors, contributing to heightened volatility in the Indian stock markets. However, in recent years, domestic institutional investors, primarily mutual funds, have assumed the role of stabilizing forces in the Indian equity markets. This shift has been instrumental in mitigating the unpredictability of foreign capital flows.
Furthermore, within mutual fund investments, it's the smaller investors who contribute relatively modest amounts each month through Systematic Investment Plans (SIP) that have emerged as significant game-changers. According to data from the industry body AMFI, nearly 37 lakh new SIP accounts were registered in September 2023. This marks the third consecutive month with more than 30 lakh new accounts, all of this despite the heightened market volatility, pushing the total SIP accounts to an impressive 7.13 crore.
Not only have the numbers been impressive, but SIP inflows have also remained robust. The monthly SIP contributions reached ₹16,042 crore in September, and the SIP assets under management (AUM) surged to a record ₹8.5 lakh crore. Over the past 12 months, SIP-linked funds have witnessed inflows of ₹1.7 lakh crore, an amount equivalent to the total FPIs inflow during the same period.
Retail investors are now better informed and making smart investment decisions. In the last few months, they have continuously exited from Equity Linked Saving Scheme (ELSS) Fund. Our cover story in this edition focuses on the ELSS Fund. Once a safe haven for tax beneficiaries, the category has been caught in the tussle of old vs new tax regimes. We highlight both sides and present you with an opportunity to compare this once-popular mutual fund scheme with its peers. Our special report analyses Long Duration Bond, and whether it is the right time to buy. The article highlights the various factors associated with long-duration bond investing.
With a great assortment of investment ideas coupled with an in-depth analysis of the world of mutual funds, we trust this edition will provide our readers with valuable insights.
Shashikant Singh
Executive Editor