New Delhi: The Association of Mutual Funds in India (AMFI) data for May 2024 reveals that equity mutual funds experienced a record-breaking inflow of Rs 34,697 crore, marking an 83.4 per cent growth compared to April 2024. This trend signifies a strategic shift among investors towards higher growth opportunities in the mutual fund industry.
For new or existing investors aiming to meet financial goals through mutual fund investments, the question arises: Is it an opportune moment to initiate or augment a Systematic Investment Plan (SIP) in equity mutual funds amidst current market volatility?
But before delving into that, let’s grasp how SIPs function within mutual funds.
An SIP allows you to regularly invest a predetermined sum, starting as low as Rs 100 or Rs 500, on a monthly basis in a methodical and consistent manner. Many individuals opt for equity schemes via SIPs. Even modest monthly investments can yield substantial growth over time.
SIPs are crafted to enable you to purchase fewer mutual fund units during market peaks and more during market downturns. This strategy aids in averaging out your investment costs and enhancing your returns.
So, should you invest now?
Continuing with SIP allocations is advisable regardless of market trends. It’s essential to note that given the ongoing bullish market, maintaining or commencing a new SIP is prudent. Market experts believe that what may presently seem like market highs could escalate further if the bullish trend persists.
“We at Union Mutual Fund believe that currently, Indian markets offer a good opportunity to invest and would urge investors to take advantage of Amritkaal (the golden period for the Indian economy) and stay invested and participate in the nation’s wealth creation while keeping in mind of self-risk appetite, life goals, and asset allocation,” explains Madhu Nair, the Chief Executive Officer at Union Mutual Fund.
Equity mutual funds witnessed a record surge in investments in May 2024. This surge has left many wondering if it’s the right time to start investing. This article explores the reasons behind the boom and offers insights for potential investors to make informed decisions. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
