65% SIP assets below 3 years amid chase for high returns, shows data

Only 17 per cent of SIP assets are over the five-year mark, which is considered ideal for equity investments to even out the impact of market volatility

Individual investors are largely using systematic investment plans (SIPs) for their equity allocations, but they aren’t holding onto SIPs for a longer period, say experts.

Industry data suggests that bulk of the SIP assets are less than three years old. 

Close to 65 per cent of assets are under the ‘less than three years’ bucket, with 47 per cent of assets in the ‘less than two years’ category.

“There have been instances where to chase higher returns or another asset class, investors have switched their SIPs and made new allocations,” said Amol Joshi, founder of Plan Rupee Investment Services.  

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