In December from SIP accounts approximately Rs. 11,000 crore investment withdrawn

AHMEDABAD: In December, mutual fund investors withdrew Rs. 11,140 crore was withdrawn. Investors booked profits after the surge in the market. Along with this, investors also withdrew investment from SIP.

Last month, the equity market Sensex posted its strongest monthly performance in 18 months with a gain of over 7.8 percent. Last month, the Nifty Smallcap 100 index gained 7 percent.

From SIP Account Rs. 11,140 crore withdrawal is the highest since April 2021. In April 2021, MFI, an organization of mutual funds, started publishing data related to this. Whenever the market rises, withdrawals from SIP account also rise. He believes that if this trend continues among SIP investors, it will cause problems.

Now whenever the market rises, a section of investors book profits in SIP accounts, sources said. This approach is against the concept of SIP, as the perspective in such investments should be long-term. December was a good month in terms of returns. At times of good returns, people insist on booking profits, which is not a good thing, as SIPs are suitable for long-term investment.

Year-end holidays can also be a reason for sip withdrawals, when most people travel. Withdrawals from SIP accounts were also high during May and July 2023. Even then the market was touching new highs. So SIP investors can save Rs. 9,000 crore was withdrawn.

Overall, the mutual funds in the calendar year 2023 are Rs. 85,870 crore attracted a net SIP inflow. Amphi data shows that in the year 2022, Mutual Funds will invest Rs. 1.5 lakh crore gross SIP investment was achieved while at the net level it was Rs. 78,700 crores.

In December, the industry reported a large growth in both investments and withdrawals in equity fund schemes. When the investors for the first time Rs. 50,000 crores gross purchase, while the outgoings were also Rs. 33,670 crore reached a new peak. Net capital inflows into active equity schemes were Rs. 16,997 crores.