Mutual fund schemes received good investment in January. This reached the total asset under management (AUM) of Rs 67.25 lakh crore. Midcap fund schemes led to an investment of Rs 5,148 crore, while smallcap funds made an investment of Rs 5,721 crore. This shows that the trust of investors remains on both these categories of funds. However, there was also a reason for concern. Cases of old SIP discucement were more seen than new SIP registration. Is it really a matter of concern?
Easy way to invest in mutual fund scheme
Sip There is an easy way to invest in a mutual fund scheme. In this, the investor invests a fiscated amount every month, every week or every quarter. Since this provides the facility of investing small amounts to retail investors, which shows more interest in it. SIP gives investors a chance to make large wealth over the long term. In January, an investment of Rs 26,400 crore was made through SIP. However, more than 5.14 lakh SIPs were closed as compared to new registration of SIP.
Investors stop their sip due to many reasons
The question is, should you also shut down your SIP? The answer is not. January data shows that the number of SIP closure was much higher than the new SIP being opened. But, often the major reasons for this are decisions related to strategy. Investors several times start a large sip in their place closed to several small SIPs. In some cases, investors close some sips for adjustment in their portfolio to increase returns.
Should you shut down your sip?
The closure of SIP does not mean that investors are withdrawing money from the market. It needs to be understood that despite more cases of sip closure, investors remain interested in mutual funds. Especially this time is not to withdraw money but to invest money. The prices of shares of many companies have come down significantly due to the continuing decline in the stock market from the end of September last year.
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Benefits of starting sip now
If you now invest in the equity scheme of mutual funds from SIP, then there will be more units allot. Due to the fall in the prices of shares, NAV of Mutual Funds Units has also fallen. This means that every month you will have more units allot on your investment. This will increase your return in the long term. Therefore, you should think about starting your sip but starting a new SIP.