By Abhi Loans
The growth of SIPs in the book has reached 18% of the industry's Assets Under Management, driven by increased awareness and the appealing returns in the equity markets.
The robust performance of equities is motivating investors to transition away from underperforming real estate, leading to an increase in the adoption of SIPs.
Financial advisors highlight the importance of aligning SIPs with particular financial objectives, while placing emphasis on considering risk tolerance and timeframes.
Around half of the equity assets are redeemed within a two-year period, raising inquiries about the reinvestment patterns.
Trends in the database indicate that investors tend to retain equity funds for a period exceeding five years, showcasing a preference for long-term investment.
Direct investment platforms play a substantial role, enabling investors to start SIPs on their own, without the need for a distributor's participation.