Covid-19: SIP inflows may be hit as investors' incomes come under pressure

Those with investments in most-affected sectors such as hospitality, airlines seek closures, other consider a pause

The slowdown in economic activity amid Coronavirus-induced lockdown is forcing mutual fund (MF) investors to consider closing or pausing their systematic investment plans (SIPs), with their monthly incomes coming under pressure due to the disruptions caused in various sectors.

Advisors say a combination of disappointing equity returns and fears of reduced income amid lockdown is driving investors towards stopping SIPs.

“Clients belonging to sectors such as airlines and hotel industry, which have been significantly affected by global disruptions caused by Coronavirus, have been forced to re-look at their SIP outgo. Also, some investors have seen pay-cuts during this period,” said Amol Joshi,