Vivek Kaul: The ‘fallacy of composition’ has left equity fund investors reeling
2 weeks, 3 days ago

Vivek Kaul: The ‘fallacy of composition’ has left equity fund investors reeling

Live Mint  

Economist John Maynard Keynes came up with the concept of ‘the paradox of thrift.’ It’s an excellent example of the fallacy of composition, where the whole differs from the sum of its parts—a situation where what’s good at an individual level may not be so at a systemic macro level. As Justyn Walsh writes in Investing with Keynes: “Keynes’ most famous example of the ‘fallacy of composition’ was the so-called Paradox of Thrift–which notes that saving is good for the individual, but if all individuals increase their savings then aggregate demand will fall, eventually leading to lower savings for the population as a whole." In India’s case, much of the stock market rally between April 2021 and September 2024, when prices peaked, was driven by retail investors, particularly those investing in equity mutual funds through the systematic investment plan route. Indeed, that’s the kind of money that must have been invested in equity MFs through SIPs, of which a large amount would have been in Indian stocks.

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History of this topic

Mutual funds: Why are investors stopping their SIPs? Experts say this
1 month ago

Mutual funds: Why are investors stopping their SIPs? Experts say this

Live Mint  

Despite an increase in systematic investment plan contributions, the stoppage ratio of SIPs, which stood at 52.3 per cent last year, has spiked to 109 per cent in January 2025. This means more SIPs were discontinued in January 2025 than new ones started, reveals the latest Association of Mutual Funds in India data. Month New SIPs registered SIPs discontinued Jan …

Equities assets of Indian households are still at just 5.8 pc much lower than Property, Gold and FDs: Jefferies
4 months ago

Equities assets of Indian households are still at just 5.8 pc much lower than Property, Gold and FDs: Jefferies

Live Mint  

New Delhi, November 20 : Indian household asset ownership has diversified over the years but the share of equities is still very low. The equities account for only 5.8 per cent of the total assets owned by average Indian households, according to a report by Jefferies. The report data highlights that Indian households still prefer to invest in traditional investment …

Vivek Kaul: Will monthly SIP investors in Indian stocks keep calm and carry on?
4 months, 1 week ago

Vivek Kaul: Will monthly SIP investors in Indian stocks keep calm and carry on?

Live Mint  

Stock markets like clean and crisp stories: This happened, so that happened. Like in early November, we were told that stock prices fell in October because foreign institutional investors sold Indian stocks worth ₹94,017 crore during the month. In October, to sell the volume of stocks FIIs wanted to, they were happy selling at prices lower than was the case …

₹250 monthly SIPs? What SEBI chairperson said about mutual funds
1 year, 3 months ago

₹250 monthly SIPs? What SEBI chairperson said about mutual funds

Hindustan Times  

Seeing the rising investments in systematic investment plans, Securities and Exchange Board of India chairperson Madhabi Puri Buch talked about how the regulator is working with mutual funds to bring down the minimum costs of SIPs. SEBI chairperson Madhabi Puri Buch talked about making ₹ 250 SIPs viable soon; SIPs in mutual funds are showing tremendous growth in the last …

SIP trend shows more investors seek to make direct bets in stocks
4 years, 8 months ago

SIP trend shows more investors seek to make direct bets in stocks

Live Mint  

A new stream of retail investors with high risk appetite is flocking to equities, often taking aggressive bets on penny stocks, in search of outsized returns at a time performances of other asset classes remain subdued because of the haze of uncertainty around covid-19. “We are seeing a surge in new demat accounts since March this year,” said Nikhil Kamath, …

SIP inflows hit 11-month low in May amid market volatility
4 years, 9 months ago

SIP inflows hit 11-month low in May amid market volatility

Live Mint  

Investment in mutual funds through Systematic Investment Plans hit a 11-month low of ₹8,123 crore in May amid market volatility and uncertain economic environment due to the coronavirus pandemic. The mutual fund industry raised ₹8,123 crore though the SIP route last month, lower than ₹8,376 crore mopped up in April, according to the latest data from the Association of Mutual …

Mutual Funds SIP flow climbs 42% to Rs7,985 crore in October
6 years, 4 months ago

Mutual Funds SIP flow climbs 42% to Rs7,985 crore in October

Live Mint  

New Delhi: Retail investors have continued to remain buoyant with SIP flows in mutual funds reaching to Rs7,985 crore in October, a surge of 42% from the year-ago level, despite stock market volatility on the back of rupee depreciation and rising crude oil prices. With this, total funds garnered through SIPs have reached to Rs52,472 crore in the current fiscal …

Mutual fund SIP investors stay put, but pace of fresh investment slows
6 years, 5 months ago

Mutual fund SIP investors stay put, but pace of fresh investment slows

Live Mint  

Mumbai: At the lowest point of trade on Thursday, the BSE Sensex was down just over 1,000 points or nearly 3%. According to data from the Association of Mutual Funds of India, the total inflows via systematic investment plans or SIPs, a bulk of which are in equity funds, was up for yet another month ending 30 September 2018 at …

Opinion | Money lessons from the financial crisis for SIP investors in India
6 years, 6 months ago

Opinion | Money lessons from the financial crisis for SIP investors in India

Live Mint  

It is scary to see your life’s investment shave half its value in a free fall in stock prices. The whole time over the year you were driven by sheer panic to sell as the signals about an imminent global financial crisis caused markets to teeter on the edge and periodically belch out another giant fall in stock prices. A …

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