Mutual funds SIP inflows have been increasing in largecap schemes in the last three to four months, said Sundeep Sikka, ED and CEO, Reliance Mutual Fund.
We witnessed a very high percentage of fresh SIPS into smallcap fund schemes until one year ago. However, in the past one year, both the inflows and new SIPs have been coming in the largecap schemes, said Sikka.
The SIP inflows and the quantity of new mutual fund investors have been increasing despite the market volatility for the past four to five months.
From the stock viewpoint, out of about 25 lakh SIPs, most of the SIPs are equally spread out between ELSS (Equity Linked Savings Scheme), largecap scheme, and balanced fund. However, according to the incremental basis, the SIP inflows are increasing in largecaps.
Sikka also stated that the investors have not panicked as they were in the past. Earlier, major inflows used to come in lump sums every time when the market goes up or the MF industry performs well. However, now the majority of inflows are mutual funds SIP inflows.
In fact, the Systematic Investment Plans have provided the investors with a better experience and a longer investment horizon. Consequently, redemptions are not triggered in spite of the market volatility. The overall redemptions for the mutual fund industry have been constant and that is mainly due to SIPs.
Many SIPs are coming in tax saver MF scheme with a lock-in of three years, obviously indicating the maturity of the Indian investors.
Sikka is confident that we will witness roughly about 10,000 crore Rupees of net flow a month maintaining at these levels and increasing steadily, regardless of the market volatility.
Previously ELSS inflows will be increasing during the last quarter, but now the trend is changing over the last few years and mutual funds SIP inflows are increasing, said Sikka, according to The Economic Times.
The post ‘Largecap Mutual Funds SIP Inflows Are Increasing In Past 3-4 Months:’ Sundeep Sikka appeared first on OWLT Market.
from OWLT Market https://ift.tt/2Mf6xqF
via IFTTThttps://ift.tt/2OlCCL9
Comments
Post a Comment