SIPs ride the market rally with record 33.06 lakh fresh accounts in July

The Systematic Investment Plan (SIP) changed the trend of the season with an unprecedented inflow of Rs 1,524.5 billion with new accounts reaching a record Rs 33.06 crore in July.
Over the past year, about 23.3 million SIP accounts were added every month, making him an increase of 279.58 million in total. According to the Investment Trusts Institute of India (AMFI), new SIP accounts reached 27.78 million in June. “We saw strong participation from domestic investors as the stock market showed strong momentum month-over-month. Proven.” AMFI’s efforts to market SIP through promotional campaigns such as ‘Mutual Fund Sahi Hai’ have also helped drive the company’s growth and acceptance from investors,” said Anand Rathi Shares and Securities. Amar Ranu, head of investment products and insights at the broker said.
Analysts believe the influx of new investors into mutual funds has been triggered by somewhat weaker performance in recent years in other asset classes and gold-hungry stocks such as time deposits and real estate. Many analysts are structurally bullish on the domestic economy, leading to strong stock market performance. Global turmoil, such as the recession, the onset of deflation in China, and slowing growth in China’s exports, could cause a temporary economic slowdown. Government reforms such as PLI, Make in India and GST have led to strong stock performance, which is also good for the mutual fund industry, they said.