Systematic Investment Plans (SIPs) have remained a popular wealth-building tool for investors as reflected in the latest AMFI data. SIP inflows crossed the Rs 26,000-crore mark for the first time in December 2024, registering over 50% year-on-year growth.
In the world of investing, starting early is the key as it helps in unlocking the power of compounding. In this article, we will explore how investors in their early 30s are leveraging SIPs, the strategies they employ to allocate investments across various mutual fund categories and the returns achieved since 2021 across different fund types.
Over the past 4 years, benchmark equity indices have surged over 60%. This return could have been even better if the market had not corrected by over 10% in the last nearly 4 months. The recent market slump has impacted mutual funds across categories. Here, the story will focus on how SIP investors in their early 30s managed their portfolios since 2021. We spoke to some young professionals to understand their strategies, portfolio allocations and the returns on their SIPs.
Also Read SIP Return: THIS top-rated small cap mutual fund turned Rs 100 daily investment into Rs 1.33 crore! Top 5 ELSS Funds: Up to 21% CAGR returns over 10 years! Rs 10K SIP grows up to a whopping Rs 42 lakh How to invest in mutual fund SIPs the right way? SBI Mutual Fund: Top 5 funds with up to 30% returns in 5 years | Rs 10K SIP grows to Rs 13 lakh
In conversations with these millennials, all under 35 years of age, a consistent pattern emerged. These investors see mutual funds as a reliable tool for financial growth. They are strategically creating portfolios that blend safety and high returns, with a clear preference for largecap funds and calculated exposure to smallcap funds. Here’s a detailed look at their investing strategies and insights.
Also read: Sensex falls over 10%, is it finally time to stop your SIPs?
Investors inclined towards largecap funds
For all these investors, with whom we had discussions, large-cap funds formed the backbone of their portfolios. Allocating 50-60% of their SIP investments to largecap funds, they have on their minds the safety and steady returns these funds offer, even during market volatility.
Ankit Tyagi,
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