Why are investors fleeing from SIPs even when market is rising?
A sales head of the leading asset management company attributed the trend to the rising risk averseness of investors who prefer to retain cash amid economic uncertainties.
The pace in new SIP accounts improved marginally to 11 lakh in July from 9.1 lakh in the previous month. But, higher discontinuation reduced the overall monthly growth in the outstanding SIP accounts to 1.2% in July 2020 compared with the four-year average of 2.4%.
ET Intelligence Group: The current rally in the benchmark indices after a sharp fall in March is yet to result in a recovery in the SIP book. In July, 7.2 lakh SIP accounts were discontinued, the highest in any month since April 2016 when the Association of Mutual Funds of India (AMFI) started disclosing the data. The number of discontinued accounts has been rising for the past three months.The pace in new SIP accounts improved marginally to 11