Despite market volatility, SIP income has risen 32 percent this year. | Jobs Vox

Inflows into mutual funds through strategic investment schemes rose 32 per cent to ₹1,35,864 crore in the last 11 months of this year compared to ₹1,02,711 crore in the same period in 2021.

With the continuous rally in the equity market and the concerted efforts of mutual funds, the number of direct SIP accounts touched a new high of 6.05 crores as existing investors continued to invest in volatile markets.

Steady income through SIP has saved the equity markets as foreign portfolio investors redeemed their investments this year.

Despite positive inflows in the last two months, FPI recorded a net inflow of ₹1.22 lakh crore this year compared to an inflow of ₹25,752 crore in 2021.

SIP assets rose 18 percent last month to ₹ 6.83 lakh crore from ₹ 5.78 lakh crore in April despite all the ups and downs in the market.

The power of SIP

Kalpen Parekh, managing director, DSP Investment Managers, said that investors in general have fairly understood the power of SIPs to deliver inflation-beating returns, but there is ample opportunity to attract more investors.

Explaining the benefits of mutual fund investment from his own experience, Parekh said that he used to gift equity units to his sister on Raksha Bandhan and these investments are now worth two crores.

Kotak Mahindra Mutual Fund Managing Director Neilsh Shah said flows through SIPs are showing rapid growth as mutual funds are increasing inflows with the help of market regulator SEBI.

In big cities, many employers are rewarding their domestic helpers and drivers with equity SIP to develop saving habits.

Sahyog

Aditya Birla Sun Life AMC recently launched Sahiyog, which aims to improve the financial health of support staff through fixed and long-term investments.

Balasubramanian, Managing Director, Aditya Birla Sun Life AMC said Sahyog is an attempt to empower others and bring financial inclusion to everyone in the society.

It provides an opportunity to improve the financial security of support staff and add value to their and their families’ lives by starting a SIP for them, he said.