Mutual funds: SIP inflows in 2023 spike 22 percent. Experts give these reasons
systematic investment plans (SIPs) reached an all-time high in November 2023 as it touched ₹17,073 crore. By no means, it was an aberration. Interestingly, in each of the past five months starting July 2023, the previous record of SIP inflows in mutual funds was broken in the following month.
Overall, SIP inflows in mutual funds reached ₹1,66,131 crore in the first 11 months of 2023 ending Nov 30, thus reporting an increase of 22.23 percent vis-a-vis corresponding period of last year. One might wonder as to why SIP contributions reach an all-time high with each successive month. It is no brainer that the ongoing bull run in financial markets played a significant part in it.
Both market indices Sensex and Nifty 50 hit new highs on Tuesday. And retail investors, upon witnessing increase in their portfolio, are incentivised to invest more money into mutual funds, preferably via SIP route. “Some investors have tasted success, and are now raising their contribution.
Then, there are additional investors who have forayed into equity. In 2020, 2021 and 2022, markets rose and as a result, a growing number of investors now want to invest in equity. Market penetration, consequently, is increasing.
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