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Showing posts with the label systematic investment plans

How mutual funds can convert your small savings into big wealth

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[hfe_template id='11223'] [ad_1] We often underestimate the power of small savings. A few hundred rupees set aside each month may seem inconsequential in the grand scheme of things. But when channelled correctly, these modest sums can transform into significant wealth over time. The secret lies in understanding the interplay between returns and time, and how mutual funds can be the perfect partner on this journey. There are two undeniable forces that drive wealth creation: the rate of return your money earns and the time you allow it to compound. While we naturally gravitate towards higher returns, it’s important to remember that they come with their baggage, volatility, and uncertainty. In moments of market turbulence, it’s easy to lose conviction and make decisions driven by fear or impulse, often derailing the wealth creation process. This is where purpose-driven investing becomes indispensable. If you invest with a strong, clear purpose, whether it's building a r...

#25 For 2025: Will retail investors brave market swings to stay put?

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[hfe_template id='11223'] [ad_1] One of the steadiest sources of money flows into the stock market in recent years faces the risk of ebbing in 2025 if equities fail to repeat performances in the recent past. Flows through systematic investment plans (SIPs) into equity mutual funds-the equivalent of recurring fixed deposits in banks-crossed a record ₹25,000 crore every month in the past three thanks to strong returns. But amid forecasts for a tough year for stocks in 2025, market participants are wondering whether individual investors will pour money into equity schemes. SIPs have been a convenient way for retail investors to put small amounts into mutual fund schemes every month. Of this, 90-95% went into equity-oriented funds. The numbers speak about their popularity. In FY21, flows through SIPs were ₹8,007 crore, doubling from ₹3,660 crore in FY17. One reason for their popularity is strong returns from equity mutual funds. Investments made in Nifty 50 through SIPs have...