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Union Mutual Fund has launched a new campaign ‘Badhna Hai Toh Lagey Raho, SIP Karo’ to promote SIPs.
Through this campaign, the fund house encourages investors to initiate or top up their SIPs due to the improved market valuations and a more investor-friendly tax regime.
The fund house thinks the current market environment can offer an opportunity for investors to align their financial plans with potential long-term wealth creation.
It estimates that the monthly SIP inflows of the industry will grow to Rs. 40,000 crore in the next 18-24 months.
Madhu Nair, CEO, Union MF said, “It’s human nature to overestimate short-term impact and underestimate long-term potential. We believe in the long-term promise of the Indian economy and equity markets over the next 10 to 15 years. This could be an opportunity to create intergenerational wealth but only for those who remain disciplined and committed to their financial journey. In a noisy market environment, we urge investors to stay focused on their goals. That’s the inspiration behind our new SIP campaign: ‘Badhna Hai Toh Lagey Raho, SIP Karo’ — a call to stay the course and invest consistently for longer period.”
Also, the fund house has changed the valuation of Indian equity markets from fair and moderately expensive to attractive. The fund house uses parameters like earnings growth, risk free rate, market required rate of return, riskiness of business and return on equity for a five-year period in their analysis and has divided valuation in five zones: very attractive, attractive, fair, modest and expensive. It had put the valuation in the fair and modest zone during 2024 before making the shift.
Harshad Patwardhan, CIO, Union MF said, “While short-term challenges such as global geopolitical tensions and trade-related uncertainties persist, India’s long-term macroeconomic fundamentals remain strong. Healthy corporate and banking sector balance sheets, prospects of a demand revival fueled by tax relief and expanded welfare schemes, and the potential onset of a new private capex cycle are key positives driving for our outlook.”
