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The minimum investment limit in mutual funds through Systematic Investment Plan (SIP) has been raised to Rs. Due to SEBI’s decision of 250, this amount of investment is likely to increase further in the future. SIP is an investment method offered by mutual fund companies. In this, one can invest a fixed amount at fixed intervals in the chosen scheme instead of lump sum investment.
Currently the minimum monthly installment of SIP is Rs. 500, but to make it more popular, market regulator SEBI has reduced the minimum SIP investment limit to Rs. 250 has been decided. Balasubramaniam, managing director and CEO of Aditya Birla Sun Life AMC, said that having a small size SIP will open the doors of investing in mutual funds even for the lower income group of the population.
The above trend will continue in SIP: Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, expects overall SIP participation to continue growing at a healthy rate year-on-year. With an upbeat economic outlook and increased market participation, SIP is likely to remain a disciplined and accessible investment option for investors, he said. Given the healthy return potential, the upward trend in SIP is expected to continue throughout 2024.
These mutual funds are amazing, they have given returns of 30 to 34 times.
Industry experts have attributed the increase in investment to several factors. These include AMFI, demographics, strong returns on equity investments and awareness being spread by the ease of investing.
In last 11 months Rs. 1.66 lakh crore investment: According to data from the Association of Mutual Funds in India (Amfi), total investments made through SIPs till November this year stood at Rs. 1.66 lakh crore was. This amount was Rs 1.5 lakh crore in the full year of 2022, Rs 1.14 lakh crore in 2021, Rs 97,000 crore in 2020.
Monthly SIP contribution in December, 2022 Rs. 11,305 crore in November, 2023 to Rs. 17,073 crore has reached an all-time high. Earlier, the monthly contribution from SIP in September and October was Rs. 16,000 crore was over.