Data from AMFI revealed on Monday that a net amount of Rs 25,872 crore was taken out for bond and security-related schemes in August.
Mutual funds are one of the most popular modes of investment. There can be various ways in which you can decide to invest in a mutual fund. Systematic Investment Plan (SIP) is one of them. SIPs and mutual funds are sometimes thought to be the same by consumers. Mutual funds are an investment product, whereas SIP is one of the ways to invest in mutual funds. So, when you invest in an SIP, you are investing in a mutual fund. Recent trends have shown that SIP is slowly becoming the prime choice for those who want to invest in mutual funds. A record investment of Rs 15,813 crore was made through SIP in India in August. Data from the Association of Mutual Funds in India (AMFI), a trade association for mutual fund providers, revealed on Monday that a net amount of Rs 25,872 crore was taken out for bond and security-related schemes in August.
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According to AMFI CEO, NS Venkatesh, the Reserve Bank’s Capital Requirements Regulation (CRR) policies to minimise excess liquidity “somewhat damaged” the industry’s performance in terms of bonds. This is because banks also view such plans from the standpoint of treasury management. A record-breaking SIP investment of Rs 15,244 crore was made earlier in July. By the end of August, according to Venkatesh, SIP’s total asset under management (AUM) was Rs 8.47 lakh crore.
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Last month, a record-breaking 35 lakh new SIPs were launched. According to him, the record SIP data demonstrates that retail investors continue to make market investments. He expressed optimism that the trend would continue in the future due to factors including robust economic growth.
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According to Venkatesh, a record 19.58 lakh SIPs were closed or had their tenure end in August. This figure exceeded 17 lakhs in July. From Rs 46.37 lakh crore in July to Rs 46.93 lakh crore in August, the mutual fund sector’s total AUM has witnessed growth.
