The mutual fund industry in India has reached a significant milestone, with Systematic Investment Plan (SIP) contributions soaring to an all-time high of ₹25,320 crore in November. This surge highlights the growing confidence of retail investors in SIPs as a reliable tool for long-term wealth accumulation. Despite market fluctuations, SIPs continue to draw investors due to their affordability, compounding benefits, and ability to reduce risks through periodic investments. The rising participation signifies increasing awareness of the importance of financial planning and achieving life goals. SIPs are now firmly established as a key component of India’s mutual fund investment landscape.
Feroze Azeez, Deputy CEO of Anand Rathi Wealth Limited, shares an optimistic outlook for FY25, emphasizing that the market is fairly valued with no significant bubbles. He suggests that investors should diversify their mutual fund portfolios, allocating 55% to large-cap funds and the rest to mid and small-cap categories, to maximize returns while managing risk.
In addition to the surge in SIPs, India’s IPO market has also seen robust investor participation. Inventurus Knowledge Solutions made an impressive debut, listing at a 43% premium to its issue price of ₹1,329, signaling strong investor confidence. Similarly, Carraro India’s IPO was oversubscribed by 1.18 times, and Unimech Aerospace and Manufacturing’s IPO was oversubscribed by a staggering 184.34 times, underscoring the market’s enthusiasm for niche sectors like aerospace manufacturing. Senores Pharmaceuticals’ IPO also saw tremendous demand, with an oversubscription of 97.86 times, indicating continued investor interest in diverse industries such as technology, healthcare, and manufacturing.
Meanwhile, Bajaj Asset Management Company (AMC) has launched the Bajaj Finserv ELSS Tax Saver Growth Plan, an equity-linked savings scheme (ELSS) aimed at offering tax benefits under Section 80C of the Income Tax Act. The fund seeks to provide long-term wealth creation, combining tax savings with the potential for capital appreciation. The NFO is open for subscription until January 22, 2025, offering investors a chance to optimize their tax planning while diversifying their portfolios for future growth.
