SIP inflows drop for sixth month in September

‘Mutual fund investors prefer liquidity’

Investments in mutual funds via SIPs dropped for the sixth consecutive month to ₹7,788 crore in September, in a challenging economic environment.

The trend is expected to reverse only gradually after investors gain confidence once their own incomes stabilise, said Primeinvestor.in co-founder Vidya Bala.

However, the industry added 7.37 lakh folios last month compared with 4.5 lakh in August, data from the Association of Mutual Funds in India showed.

Funds via SIPs last month compare with the ₹7,791 crore garnered in August. Investments in September 2020 hit the lowest since September 2018, when fund collection through the route stood at ₹7,727 crore. “Investments via SIPs have dropped because investors want to maintain some liquidity at their end at present as the situation is uncertain when it comes to their jobs and businesses,” said Harshad Chetanwala of MywealthGrowth.com.

Ms. Bala said SIP inflows were lacklustre as many retail investors stopped SIPs in the lockdown. With markets at a high, those who stopped hesitate to start now, expecting correction.

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