Investing a predetermined amount at regular intervals – once a day, once a week, once a month, once in 3 months – has become so convenient and popular in mutual funds that the common Indian investor has taken to it as ducks take to water. This method is called Systematic Investment Plan, or SIP, in short.
In the month of August alone, an amount of Rs 23,547 flowed in through the SIP route through 9.61 crore mutual fund accounts or folios. The money flowing through SIPs has been rising constantly. The Association for Mutual Funds in India (AMFI) has said that August 2024 marked the 42nd consecutive month of positive net inflow into equity funds. It is against this backdrop that the decision of HDFC Bank to facilitate “instant SIPs” needs to be viewed.
Buy units without delay
HDFC Bank is the largest private sector bank in India. Its customer base stands at an estimated 12 crore which is 1.77 times the total population of England. HDFC Bank has rolled out new features in its SmartWealth app by adding services which would make investments simpler. It is called Instant SIP. As the name implies, it will enable an user to invest in a mutual fund scheme and buy units immediately without losing time.
In any investment, the time factor is significant since the price of market-linked instruments is dependent on time. Therefore, investors increasingly want to invest the moment they spot an opportunity. The Instant SIP feature will allow one to accomplish the task without any delay.
Young and restless investors
As the demographics of the Indian investor are transforming and more and more younger investors are entering the market, the patience of the investors is wearing thinner and thinner. Many are abandoning the intermediary route and investing directly through the digital avenue. HDFC Instant SIP is trying to make the act of investment even quicker for the modern-day investor.
Unified Dashboard
HDFC Bank has also given a makeover to its Unified Dashboard that allows an investor a consolidated snapshot of all his/her investments from FDs (Fixed Deposit) to equity markets and mutual funds.
Systematic Investment Plan, or SIPs, have caught the fancy of Indian investors both because of their wealth-generating capabilities and convenience. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
