MUMBAI: The ratio of fresh SIP registrations to the closure of old SIPs saw a sharp rise in June, with a large number of new SIPs being registered. SIP stands for Systematic Investment Plan, a system of investing a fixed amount in a mutual fund every month. Data released by Amfi (Association of Mutual Funds in India) shows that 21.3 lakh fresh SIPs were launched compared to 7.63 lakh SIPs which indicates that for every SIP stopped almost 3 new SIPs were launched. In terms of net flows, Amfi data showed that 36% of the flows in equity mutual funds came from SIPs rather than lump sum investments. A lot of new investors have also come into mutual funds and they are testing the waters with small SIPs.

Source: Mint July 09, 2021 11:37 UTC