ET Explainer: Increasing SIP amount in your funds
Investors are continuously increasing their contributions towards systematic investment plans (SIP). Data show that inflows through SIPs have increased every month touching ₹23,332 crore in July 2024, as compared to ₹15,814 crore in August 2023.
HOW CAN A SIP INVESTMENT BE INCREASED?
Investors can increase their monthly SIP contribution by adding money to their existing mutual scheme or choosing a new fund for their portfolio. They can schedule the additional amount on the existing SIP date or any other convenient date. Choosing different dates helps in spreading the investments over the month.
Best MF to invest
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-113047540»>SHOULD INVESTORS ADD A NEW SCHEME, WHILE INCREASING THEIR SIP AMOUNT?
Investors should build their long-term mutual fund based on age, risk-taking ability and long-term goals. They should follow an asset allocation approach and diversify across equity, fixed income, gold and REITs / InvITs. They could use a mix of active and passive funds to build their portfolio. While the core portfolio should be in long-term-oriented fund categories, they could have some thematic or sectoral funds in their satellite portfolios for alpha generation. Take the case of an investor with a SIP of ₹10,000 per month of which ₹8,000 is in a flexi-cap or multi-cap fund, ₹1,000 each in gold and fixed income. If the investor wishes to park an additional ₹2,000 and has a high risk appetite, it can be in a thematic or sectoral fund, while if
