The truth about SIPs

A few days back, there was an article in this newspaper highlighting that equity mutual fund inflows have seen the 'highest inflows in 4 months'. Net inflows in these funds had hit a low of Rs 2,258 crore in November 2022 but rose sharply in December to Rs 7,303 crore and Rs 12,546 crore in January. Over the last 12 months, the high was Rs 28,463 crore in March, and the low was the November figure above. That's quite a wide range, with the maximum being 12 times the minimum! Note that these are net inflows, that is, inflows minus the outflows. While these ups and downs are going on, SIP inflows rise steadily. December saw Rs 13,573 crore of SIP inflows which was the highest till that point, and January was a bit higher than that, setting another record. Broad