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Mutual Fund Systematic Investment Plan (SIP) : Increase In Collection (2022)

News: Data from the Association of Mutual Funds in India (AMFI) stated that due to increased retail involvement, mutual fund SIP collection will increase by 31% to Rs. 1.5 lakh crore in 2022.

• The market volatility in 2022 has little effect on the contributions made to mutual fund schemes through systematic investment plans, or SIPs, which increase to 1.5 lakh crore in 2022, a 31% increase from a year earlier due to increasing retail involvement.
• A Systematic Investing Plan (SIP) is an investment strategy provided by mutual funds that enables an individual saver to invest a specified amount in a preferred plan on a regular basis, such as once a month, as opposed to all at once.
• The SIP instalment amount, which resembles a recurring deposit, might be as low as 500 per month.
• SIPs assist in achieving financial objectives by making tiny monthly investments that eventually lead to the accumulation of the necessary corpus for achieving the objective.
• SIPs help the investor develop investment discipline.
• SIPs are carried out in open-ended funds, allowing investors to put money in and withdraw it whenever they want.
• The tenor of SIP operation is not determined.
• Beyond the SIP tenor has been determined, it can be stopped in the middle of the tenor or continued even after by submitting a request to the appropriate mutual fund company.
• A mutual fund is a collection of funds that is professionally managed by a fund manager.
• A trust that invests money in stocks, bonds, money market instruments, and/or other securities after collecting funds from a number of participants who have similar investing goals.