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<ul><li>March 2021 saw the highest ever <keyword id="35471" type="ORGANIZATION" weightage="20" keywordseo="SIP">SIP</keyword> net inflows of ₹91.8 billion.</li><li>According to analysts, this because anyone who was looking to make easy money off of India’s economic recovery has already bagged their profits — or run out of patience.</li><li>People still want to invest in the market and capitalise on India’s economic growth but, they want to do it without having to worry about the day-to-day nuances.</li></ul>Whatever easy money was to be made in the market has been made. According to analysts, the next best bet for the common man, while also being safe, is <keyword id="176782" type="ORGANIZATION" weightage="20" keywordseo="Systematic-investment-plans">systematic investment plans</keyword> (SIPs). <ul> </ul>The net inflow of SIPs was at its highest ever in March 2021 — worth ₹91.8 billion. The month was also the first time in eight months that equity funds saw inflows instead of outflows. <ul> <div type="image" title="Copy of states with highest covid 19 cases" msid="82032742" hostid="261" caption="&amp;lt;p&amp;gt;The net inflow of funds towards systematic investment plans (SIPs) was at its highest ever in March 2021&amp;lt;/p&amp;gt;"></div></ul> “A lot of demat accounts were opened during the pandemic. People went for investing in direct equities. Now that the easy money has been made, people will go back to normalisation of allocation of money,” Tarun Birani, the founder and director of TBNG Capital Advisors, told Business Insider India. Last week, <a href="https://www.businessinsider.in/business/startups/news/online-investment-platform-groww-is-indias-latest-unicorn-as-it-raises-83-million/articleshow/81952184.cms">Groww</a> became the second wealth management unicorn after Zerodha. During the course of the pandemic, Paytm Money introduced stock trading on its platform. Startups were offering low brokerage fees and an easy way to invest as they challenged legacy platforms like ICICI Direct or Kotak Securities. “A lot of investors thought it would now become frictionless to buy stocks and creating a diversified portfolio is no longer difficult. But, what has happened in the last couple of months, that market is more turbulent on a day-to-day basis… Many don’t understand the nuances of the market if the market is generally going up,” said Dhirendra Kumar, the chief executive of Value Research. According to analysts, the primary trigger for the uptake is a combination of three factors — liquidity, lower risk free rates and the pandemic shedding some of its uncertainty. <cmsannotation type="cmsannotation" annotationid="Take out a loan and make up for interest payments by investing in the market" comment="subhead" text="Take out a loan and make up for interest payments by investing in the market">Take out a loan and make up for interest payments by investing in the market</cmsannotation> The Reserve Bank of India (RBI) and the Indian government have been pumping money into the economy. They want to make sure that there is enough liquidity in the market to drive up demand so that the Indian economy can get back on its feet. As April kicked off, RBI governor <a href="https://www.businessinsider.in/finance/news/rbi-forecast-shows-that-narendra-modi-administration-is-facing-its-worst-inflation-period-so-far/articleshow/81946820.cms">Shaktikanta Das</a> told reporters that the apex banking institution has no plans of tightening liquidity in the market and will continue its accommodative stance for the next three months. “There is ample liquidity. Because there is ample liquidity, the risk free rates will come off meaningfully. When that happens, generally people tend to take a risk,” explained Birani. This means that if people have more money in hand — while inflation is in <a href="https://www.businessinsider.in/finance/news/rbi-forecast-shows-that-narendra-modi-administration-is-facing-its-worst-inflation-period-so-far/articleshow/81946820.cms">excess of 6%</a> — they have an increased ability to invest. It also means that if they’re taking out a loan and the market is doing well, they think they can leverage their investments in the market to make up the difference. <cmsannotation type="cmsannotation" annotationid="Risk free rates of interest just aren’t going to cut it anymore" comment="subhead" text="Risk free rates of interest just aren’t going to cut it anymore">Risk free rates of interest just aren’t going to cut it anymore</cmsannotation> As a salaried individual, the safest ways to invest your money is by putting it in a savings account, locking it up in a fixed deposit or finding a government instrument to invest in. Many parked their funds in the Employee Provident Fund (EPF). But in the most recent budget, the government capped the <a href="https://www.businessinsider.in/finance/news/checkout-what-all-will-change-from-1st-april-for-you-as-the-new-financial-year-kicks-in/slidelist/81776624.cms">non-taxable amount at ₹2,50,000</a>. Moreover, the return on fixed deposits doesn’t make up for inflation and savings account rates even less so. This leaves the average investor with very few options. And, since investing directly into funds when the market is getting kicked around by daily speculation, SIPs is a safer option. “Everybody was waiting for the big correction, which hasn’t happened. They’re losing patience. It’s better to have a plan rather than depend on the market,” said Kumar. <cmsannotation type="cmsannotation" annotationid="Is the SIP uptake here to stay?" comment="subhead" text="Is the SIP uptake here to stay?">Is the SIP uptake here to stay?</cmsannotation> As a salaried individual, one only thinks about assessment management or financial planning where the inflow of cash is certain. “If you feel confident about where that cash flow is coming from, you start allocating — whether it's in equity, gold or wherever they want to,” said Birani. And, with the pandemic shedding its uncertainty, markets are on an upward trajectory. “With buoyant stock markets, we can only hope that the positive trend in equity flows is not a one-month or a year ending aberration but a return of investors to mutual funds and long-term investing,” said Gopal Kavalireddi, the head of research at FYERS — a tech-focused stockbroking and mutual funds investment platform. Ratings agencies expect India to reclaim its growth as the fastest growing country in the financial year 2022, with GDP growth clocking in anywhere from 10.5% to over 13%. However, the rapid increase in the number of COVID cases across the country and the subsequent lockdowns could throw India’s economic recovery off track. “If there is any blip in the momentum, it will be because people are biding their time to see how the new lockdown situation prevails. It may put people on the tenderhooks again,” said Birani.

Here’s why people are suddenly going for SIPs — and why the trend isn’t going to end anytime soon

Best mutual funds to invest in via SIP for great returns in 2020

The Systematic Investment Plans (<keyword id="159805" type="COMPANY" weightage="20" keywordseo="SIPs">SIPs</keyword>) have become popular among people, especially after demonetisation. SIP can be dubbed as one of the most sought-after options of investing in mutual funds as it allows an investor to invest a certain amount periodically in a mutual fund for a specific period. Investing in mutual funds through an SIP offers investors better risk-adjusted returns and it has various benefits such as it brings discipline into your investing habits, allows you to decide how much you wish to invest, provides price averaging, takes away the need to time markets, etc. “SIPs help you by averaging costs and reducing risks. So the longer you stay invested, the higher would be your returns. So remember that your SIP is for a long period, and do not stop your SIP mid-way unless it is due to a break in income,” said Ajit Narasimhan, Category Head – Savings &amp; Investment, BankBazaar. Although there is no right age to invest in SIPs, but, like any other investment, the sooner you invest, the higher would be your returns. Moreover, the smaller investment size and the periodicity means that you can begin investing much earlier. Here’s how you can build a huge corpus just by investing just Rs 2,000 per month <table> <tbody><tr> <td> Duration </td> <td> SIP Amount (Rs) </td> <td> Future Value (Rs) </td> </tr> <tr> <td> 4 years </td> <td> 2,000 </td> <td> 1.2 Lakh </td> </tr> <tr> <td> 5 years </td> <td> 2,000 </td> <td> 1.6 Lakh </td> </tr> <tr> <td> 8 years </td> <td> 2,000 </td> <td> 2.9 Lakh </td> </tr> <tr> <td> 10 years </td> <td> 2,000 </td> <td> 4.1 Lakh </td> </tr> <tr> <td> 12 years </td> <td> 2,000 </td> <td> 5.6 Lakh </td> </tr> <tr> <td> 15 years </td> <td> 2,000 </td> <td> 8.4 Lakh </td> </tr> <tr> <td> 18 years </td> <td> 2,000 </td> <td> 12.1 Lakh </td> </tr> <tr> <td> 20 years </td> <td> 2,000 </td> <td> 15.3 Lakh </td> </tr> <tr> <td> 22 years </td> <td> 2,000 </td> <td> 19.2 Lakh </td> </tr> <tr> <td> 25 years </td> <td> 2,000 </td> <td> 26.8 Lakh </td> </tr> <tr> <td> 28 years </td> <td> 2,000 </td> <td> 36.9 Lakh </td> </tr> <tr> <td> 30 years </td> <td> 2,000 </td> <td> 45.6 Lakh </td> </tr> <tr> <td> 35 years </td> <td> 2,000 </td> <td> 76.6 Lakh </td> </tr> </tbody></table> The returns here are calculated at 10%. Equity markets have given an average of over 15% per annum for the last 10 years. So, you will be making a lot more.

Here’s how you can earn lakhs by just investing Rs 2,000 per month

Systematic Investment Plans (SIPs) have become one of the most sought-after methods of <keyword id="35175" type="UNKNOWN" weightage="20" keywordseo="investing">investing</keyword> in mutual funds. An SIP allows an investor to invest a certain sum of money periodically in a mutual fund for a specific period. It operates similar to a recurring deposit. However, unlike RDs which are debt instruments, SIPs are linked to mutual funds, and therefore, the market performance. If you are thinking how much should be invested through SIPs, experts suggest to stay invested for a longer period. “Also, it is essential that you do not miss your investment commitments. You must not attempt to invest more than what you know you can spare after your liabilities and essential expenses are covered,” said Ajit Narasimhan, Category Head – Savings &amp; Investment, BankBazaar. Narasimhan said investing in mutual funds through an SIP offers investors better risk-adjusted returns. Here are 4 reasons why SIPs are a good deal

4 reasons why investing in SIP is a good decision

<ul><li>The new fund offer opened on Feb 14 will close on Feb 28. </li><li>The fund will invest in everything from share market to debt to exchange-traded commodities. </li><li>For example, if the share market is going down and copper prices are rising, it will keep the investment in good stead. </li></ul>Tata Mutual Fund has launched 'Tata Multi Asset Opportunities Fund'. This is a diversified fund that will invest in a wide range of assets from equity and debt to exchange-traded funds commodity derivatives. The minimum application amount for this fund is ₹5,000 and in multiples of ₹1. The diversification in investments will adjust the risk and offer better returns, according to Tata Asset Management. For example, if the share market is going down and copper prices are rising, it will keep the investment in good stead. 25% of the investors’ money will be invested in exchange-traded commodity derivatives, where a maximum of one in every ten rupees can be invested in any one commodity. “"Negative correlation between different assets ensures not all investments fail at the same time giving stability to the portfolio,” Chief Investment Officer Rahul Singh said. What are commodity derivatives? Derivatives allow investors to profit from the trade without actually possessing the commodity. The buyer of a derivatives contract, essentially, buys the right to exchange a commodity at a certain price sometime in the future date. What is an exchange-traded fund? An exchange-traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, like the Nifty or Bank Nifty, although they can invest in any number of industry sectors, the Investopedia explains. They are in many ways similar to mutual funds; however, they are listed on exchanges and ETF shares trade throughout the day just like ordinary stock. 'Tata Multi Asset Opportunities Fund' will invest in such exchange-traded funds that invest in commodity derivatives. Investment options The scheme presents two types of investment plans namely ‘Regular Plan’ (for applications routed through distributors) and ‘Direct Plan’ (for direct applications). Both these categories again give two options each namely ‘Growth Option’ and ‘Dividend Option’. If you do not tick the options you find on the application form, your units will be allotted by default under the ‘Direct Plan – Growth Option’. If the dividend amount receivable by an investor is less than ₹500, it will compulsorily reinvested in the same way as before. Whereas the distribution of dividend (more than ₹500) will be at the discretion of the Trustees. There is no entry load (a charge for investing) but the investor will have to pay an exit charge of 1% of the net asset value (NAV) if he/she chooses to pull money out or switch to another fund within the first year. Minimum redemption amount will be ₹500 or 50 units or account balance whichever is lower. There are no guaranteed returns. SEE ALSO: <a href="https://www.businessinsider.in/personal-finance/news/checkout-top-10-sip-mutual-funds-for-investment-in-2020/articleshow/72859378.cms">best sip mutual funds for 2020</a>

Tata Mutual Fund has launched the ‘Tata Multi Asset Opportunities Fund’ for those who want to curb risk by diversifying investment

What story did you tell yourself when you bought that expensive bag? What was the reason behind your impulsive shopping, which overshot your <a href="http://www.businessinsider.in/searchresult.cms?query=budget">budget</a>? 
 
We all have reasons and stories to tell ourselves when we cross our budget or give in to our temptation. We can easily write books on excuses pertaining to <a href="http://www.businessinsider.in/searchresult.cms?query=financial">financial matters</a>, the composition being more of fiction and less of truth. 
 
Here are FIVE excuses, stories and reasons what we tell ourselves. 
 
When you go overshoot budget for the month 
 
Well, it was sale during monsoons and all your favourite brands were offering discounts. Of course, you had to pick that bag, which you had been eyeing since months, immediately. So what, if you don’t need a bag now? Someday you will be using it right! 
Sticking to your budget is non-negotiable. That’s the only way to do it! 
 
An unplanned huge expense 
 
This week was a bit rough at work and people close to you did not understand you. You feel drained trying to juggle everything in life. Obviously you need to get your mind off the mundane life and what is better than retail therapy? Meditation may or may not work, but buying that new iPhone or Bose speakers definitely would. Swiping that <a href="http://www.businessinsider.in/searchresult.cms?query=credit+card">credit card</a> will sort everything. Now, whom are we kidding with such stories. 
<a href="http://www.businessinsider.in/searchresult.cms?query=expenses">Spending</a> big bucks is not a justifiable reason for escaping routine life. Ups and downs are inevitable but working out things need not involve writing large cheques! 
 
Irresistible temptation 
 
You are determined to make this year, the best one for your finances. SIPs, mutual funds, and other investment plans are made and you pat your own back, decide to relax for a while on the sofa. 
 
The sofa feels a bit hard, maybe because it is old. Your friend’s new sofa was so comfortable last evening. You definitely need that kind of a sofa set. What’s the point <a href="http://www.businessinsider.in/searchresult.cms?query=saving+money">saving all this money</a> and being uncomfortable in your own living room? You hear all the voices in your mind which say, “Agreed. Go get one now! The investments can happen after six months.” <keyword id="6368202" type="ORGANIZATION" weightage="100" keywordseo="Credit-card">Credit card</keyword> comes to the rescue and a brand new sofa is home! 
Now you know who the devil is. Temptation is its name! Resist temptation and focus on your plans. Temptation can disguise itself cleverly with excuses, which compel you to give in to its demands. Keep your mind clear and focus on your plans! 
 
Competing with society, especially neighbours 
 
Forget the Kardashians! Because we are so busy keeping up with our neighbours. Home renovation, new car or a vacation abroad! You need to make a point by doing better and if not at least the same. Remember that Asian paints ad - naya ghar, nayi gaadi and the envious “badhiya hai” from the neighbour? Haven’t you caught yourself saying it while checking out your neighbour’s new asset? 
 
A competitive spirit is good but comparing with somebody else and buying new things to get an ego boost is definitely not a good idea. Nurture your ego with positive things that don’t burn a hole in your pocket! Rather than keeping a check on the neighbours, keeping a check on your <a href="http://www.businessinsider.in/searchresult.cms?query=cibil+score">CIBIL report</a> is a better and beneficial alternative. 
 
Log kya kahenge! 
 
Very often we justify our own expenses by linking it with other people’s opinions. This happens especially when it comes to social occasions like marriages, parties or gifting occasions. The excuse that we make to convince ourselves is that “If I end up spending a certain amount of money, people will form a good opinion about me.” 
 
But you know what? People are still going to find mistakes and shortcomings, no matter what you do! 
Shake off the “log kya kahenge” attitude and do exactly what you think is right for yourself and your wallet. Use your time in maintaining your <keyword id="2054234" type="UNKNOWN" weightage="100" keywordseo="CIBIL-Score">CIBIL score</keyword> rather than thinking about people’s opinions about you. Focus on facts over fiction. 
 
Real life is based on facts and figures. Get them right and you are sorted. 
 
(Rajiv Raj is the Director and Co-Founder of <a href="http://www.creditvidya.com/">www.creditvidya.com</a>) 
 
(Image: Thinkstock)

You Searched For "sip mutual funds" and got 6 results

Here’s why people are suddenly going for SIPs — and why the trend isn’t going to end anytime soon

Prabhjote Gill

Best mutual funds to invest in via SIP for great returns in 2020

BI India Bureau

Here’s how you can earn lakhs by just investing Rs 2,000 per month

Akanksha Jain

4 reasons why investing in SIP is a good decision

Akanksha Jain

Tata Mutual Fund has launched the ‘Tata Multi Asset Opportunities Fund’ for those who want to curb risk by diversifying investment

BI India Bureau

5 excuses that we make when we overshoot our budget

Rajiv Raj

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