A few AMCs see the number of SIP investments going down while others observe the opposite
A few AMCs have observed a dip in SIP investments in the last month. SIPs, regarded as the best way to enter the mutual fund space for retail investors now fail to lure them. A few of them attribute it to the fall in savings as households try to cope up with rising inflation, others blame the new KYC rules.
“We are seeing a slowdown in SIP investment due to new KYC rules. But we believe that it is a short term scenario as SIPs are always the best way to invest in the MF industry,” said says Aashish Somaiyaa, Head - Retail Business, ICICI Prudential Mutual Fund.
The same perspective is shared by another big player of the industry- DSP BlackRock. “We feel that SIP investments are going down due to rise in inflation. Investors are bound to cut down on savings if the inflation rises drastically,” said a spokesperson of DSP BlackRock.
On the other hand, UTI Mutual Fund claims to have a different experience and has not seen any fall in SIP investments.
Is there a rise or a dip in SIP investment? Let us wait till the final numbers come out.
