SIPs offer a disciplined and systematic approach to wealth creation in India, catering to investors of all income brackets. They provide the advantage of rupee cost averaging and flexibility in tenure, debunking common myths and offering tax benefits for long-term wealth accumulation.
Mutual fund SIP inflows surged to Rs 2 lakh crore in 2023-24, up 28% YoY. SIP book touched Rs 19,270 crore in March 2024. Industry aims for Rs 25,000 crore milestone by 2024.
Quant Small Cap Fund topped the list with 46.70% SIP returns. Nippon India Small Cap Fund offered 37.92% returns. Quant Mid Cap Fund, Bank of India Small Cap Fund, and Quant ELSS Tax Saver Fund also performed well with returns of 34.45%, 34.44%, and 34.05% respectively. The analysis considered XIRR (% returns) for schemes with a five-year horizon from January 2019 to January 2024.
The beauty of SIPs lies in their ability to allow investors to not time the market. They offer benefits such as rupee cost averaging, compounding, and hassle-free investing. Starting early, mapping SIPs to financial goals, and never skipping an SIP are key strategies for maximizing returns.