Inflows into equity schemes of mutual funds through systematic investment plans (SIPs) have been steadily on the rise, much to the delight of fund managers, and the sales teams at asset management companies.
Average monthly SIP inflows so far in FY18 has been Rs 4,636 crore, up 27 percent over the monthly average of Rs 3,626 crore last year, according to data collated by the Association of Mutual Funds.
That makes life a lot easier for fund managers, who are able to plan their allocations better.
In the past, retail investors would rush to put money in a raging bull market and then withdraw it as the market began to slide. That meant fund managers would often have to bet on shares of risky companies near the market top and then have to sell quality stocks in a downtrend because the rest would not have any takers.