Mutual Funds Take Action SIP by SIP

Article Written By: dspblackrock

The recent rally in the stock market has opened a plethora of questions in the minds of the retail investor. While on one hand the experience of 2008 still looms over the small time investors, on the other hand is the story of stronger fundamentals driving the show this time.

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”.

Over a short period of time, a sharp rally has been seen, not only in Indian markets but across the world. This reflects market optimism that things are getting better in terms of the global economic recovery. These are results of quick steps taken by central banks and policymakers to address the situation arising from the financial crisis in late 2008. More importantly, consumer demand has picked up in other parts of the world and certainly in India. Government's stimulus programmes have helped enormously, which added to investment expenditure in infrastructure.

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 fu¬ture would only be a by-prod¬uct 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 pre¬dictions, this rally should last for a while. Inves¬tors 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.

With many of the stocks touching their all-time highs, many equity mutual funds (launched prior to Jan 2008) also have seen their NAVs touching highs or crossing all time highs creating opportunities for some of the retail investors to exit by booking profits.

According to numbers from Computer Age Management Services, one of the registrars, the number of fresh sys-tematic 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.

About the Author

Nisha Dixit - look out for the top mutual funds in India. DSP BlackRock investment managers provides you online investment which is very secure and safe.

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