MAXIMISING RETURNS 

Mutual fund SIP inflows have witnessed a steady increase, with the total assets under management (AUM) reaching ₹9.95 lakh crore in December 2023, reflecting a 14% growth compared to September.

Here are the primary reasons for increasing SIP inflows annually:

As Nifty50 and Sensex stocks yielded approximately 20% and 18% returns in 2023, adjusting SIP amounts becomes crucial to align with the 18-20% surge in stock prices during the same period.

Regularly increasing SIP inflow is crucial to combat the impact of inflation on future financial goals, ensuring investments align with rising costs and maintain goal adequacy.

A rise in income often results in higher expenses, yet adjusting SIP upwards encourages disciplined wealth creation by channelling surplus income into mutual funds rather than spending it.

Investors, as they gain experience, may adjust their investments based on their evolving risk appetite, with conservative investors favouring blue-chip and debt funds and those with a higher risk appetite exploring small-cap and mid-cap funds.

In bullish market phases, incrementally raising equity exposure via higher SIP inflows empowers investors to capitalize on opportunities and optimize returns during the prevailing market rally.