Rs 1 trillion: Cumulative flows via systematic investment plans (SIPs) crossed the Rs 1-trillion mark in 2019-20.
- Mutual fund investors have chosen to continue with their SIPs despite high turbulence in equity markets.
- According to data from the Association of Mutual Funds in India (Amfi), inflow via this route was Rs 8,641 crore in March.
- That SIP flows have held on is seen as a sign of growing maturity among investors.
- Increasingly, investors are realising that equity investing is for a long-term horizon of seven years or more.
- They have also understood that they need to keep their SIPs going in such times, as each of their instalments buys more units during downturns.
- This in turn boosts their fund’s performance when the markets recover.
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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.