Equity SIPs - Trustline Blog

1
Equity SIPs

• What explains this huge traction in SIPs? Source
  AMFI India The latest data put out by the
  Association of Mutual Funds of India (AMFI) on
  mutual fund SIPs is quite encouraging. There has
  been a sharp 53 growth in total SIPs in fiscal
  2018 compared to fiscal 2017."

2
Equity SIPs What explains this huge traction in
SIPs? Source AMFI India The latest data put
out by the Association of Mutual Funds of India
(AMFI) on mutual fund SIPs is quite encouraging.
There has been a sharp 53 growth in total SIPs
in fiscal 2018 compared to fiscal 2017. What
explains this huge traction on SIPs especially
considering that the Nifty and the Sensex are
already fairly valued?
3
The equity TINA factor There is no alternative
(TINA) appears to be driving this demand for
SIPs. Most retail investors have discovered the
virtues of rupee cost averaging and the power of
compounding in the last 4 years. The average
diversified equity fund has given nothing less
than 14-15 annualized and that is the kind of
returns you dont get in any other asset class.
Weak returns on debt and the compliance worries
over gold and real estate are actually forcing
investors to gravitate towards equities. Who
cares about LTCG? That appears to be the message
from the SIP numbers. Investments in SIPs
actually got accentuated in the month of February
and March after the budget had announced the 10
tax on LTCG. The reasons are not far to seek. The
net difference in CAGR returns on SIP is only
marginally lower even after you consider the tax
effect. An appetite for passive What this also
shows is that there is a huge appetite for
passive investing in India. Most investors look
at an equity SIP as a passive investment as they
are not required to put in any effort. When
investors have tasted the power of passive
investment and the merits of discipline, they are
not keen to shift. The big shift towards equity
SIPs may have just about begun in India. May we
live in interesting times!
4
Read More...https//www.trustline.in/blog/equity-s
ips/