SIP rally of sorts at fag end of 2012
SIP registrations of 2.45 lakh in the last quarter of CY12 was the highest in the year. Live SIP folios regained the 26-lakh-mark in December after slipping below 26 lakh in June 2012, while the average SIP amounts touched a two-year high after crossing the R1,800-mark in October. The benchmark BSE Sensex rose 3.5% between October and December.
“Despite the rally, a lot of people are still apprehensive and unsure as to which way the market will move. So, they are preferring to invest through SIPs rather than lump sum,” said Jaideep Bhattacharya, managing director, Baroda Pioneer MF. Added Deepak Chatterjee, CEO of SBI MF: “It is true that some investors have used the rise in the market to cash out, but a new set of investors have come in.”
Industry observers had expected SIP numbers to deteriorate in December fearing some exodus of mutual fund money to tax-free bonds of firms such as PFC. However, the issuances came a cropper as retail and high networth investors shunned the offerings because of unattractive yields.
It must be noted that fresh SIP registrations had been falling since the beginning of 2012 and had stood at
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