Opinion
Mint Quick Edit | Record SIP inflows in October: Source of stability
Summary
- The month saw an impressive sum drawn into the stock market by systematic investment plans (SIPs), even as the number of SIP accounts surged. This retail investing boom could act as a stabilizing factor as we enter what may be a corrective phase.
Despite the share market selloff, retail investors seem to be in no panic. In fact, fresh data on systematic investment plans (SIP) from the Association of Mutual Funds of India (Amfi) suggests they are unflappable investors.
The total amount of money flowing into equity markets through SIPs hit a record ₹25,322.74 crore in October, up from ₹24,509 crore in September. The count of SIP accounts also climbed to a new peak of 101.2 million from 98.7 million, according to Amfi data released on Monday.
Clearly, the fall in portfolio values over that month, a period marked by foreign money being pulled out in large quantities, did not send routine investors scrambling for the exits. On the contrary, the funds being channelled into equities through this route went up.
Also read: Equity fund inflows surge 21% to ₹41,887 crore in October; SIPs reach record high
Perhaps some people see weakened prices as a chance to enter the market. Or are committed to staying for the long run and are determined not to be shaken by turbulence along the way.
Either way, India’s retail investing boom has held up and could act as a stabilizing factor as we enter what may well be a corrective phase, with stock prices flagging after an extended rally and corporate earnings needing to catch up.
