Home / Markets / News / 65% SIP assets below 3 years amid chase for high returns, shows data

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

Premium

Experts say MF investors are also getting lured by direct equity in recent months, in the hunt for higher returns

3 min read Last Updated : Aug 31 2020 | 10:06 PM IST

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.

Only

Topics : SIPs Mutual Funds

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in