Mutual Funds – A SIP in Time Saves Nine

While it is never too late for the novice investor to join the bandwagon, it warrants some amount of caution while choosing the right investment avenue. Mutual Funds are back in action promoting this time the concept of regular investing which popularly has been catching up with the masses “SIP by SIP”. DSP BlackRock Mutual Fund has been promoting this concept with a new tag line – SIP: Ek Kadam Aagey.

According to DSP BlackRock Mutual Fund, one amongst the top mutual funds in India, the year 2009 saw the consumption sector do very well which in its view ought to continue. But, it also expects that sectors focused on corporate capex and infrastructure should do well in 2010 as it sees big focus in these areas.

Given the fundamentals of Indian Inc., this rally was on the cards. The Sensex touching 20,000 or if it were to scale new heights in the fu­ture would only be a by-prod­uct of the upbeat trends that are visible in our economy. As long as those factors stay in place, which should be the case going by the robust pre­dictions, this rally should last for a while. Inves­tors would be well-advised to make use of it if not directly through good stock selection then at least by investing through the best performing available mutual funds in India.

While equity mutual funds have been thirsting for big money over the past year, retail investors have been increasingly opt­ing for regular monthly investments in these funds to build their equity portfolios. According to numbers from Computer Age Management Services (CAMS), one of the registrars, the number of fresh sys­tematic investment plans (SIP), wherein a fixed sum is invested each month, has shot up by more than 45% between June 2009 and July 2010. Many of the well-known online mutual funds have initiated special marketing push to catch these novice regular investors to increase their penetration among the masses.