The trend of initiating bulk systematic investment plans, or SIP, is catching on. Armed with the technological ease of exchange platforms, advisers are challenging themselves to set new records in logging bulk SIPs.
Recently, we had written about the achievements of Rajesh Kulwal, Prakash Hegde, Rupesh Jain and Ankit Chopra who processed record SIPs on BSE StAR MF in one day. Encouraged by their success stories, many advisers are jumping on this SIP marathon bandwagon. Kota-based distributor Avdhesh Garg, who manages Rs 85 crore in mutual fund assets, is the latest to join the SIP hall of fame.
To mark the festive day of Navratri, Avdhesh launched ‘SIP Staphana Day’ on October 10. He, along with his team, started spreading the word about this campaign through text messages, WhatsApp and phone calls from October 1. They reached out to 1,200 clients and prospects. His team encouraged clients to start SIP to benefit from the fall in markets and stressed on the importance of topping up their existing investments. The team recommended funds after studying clients existing portfolios. Many of these clients came to his office to submit cheques.
By October 9, they collected 1,154 applications. To celebrate SIP Staphna Day on October 10, his team reached office early and started punching orders on BSE StAR MF. By 3 pm, they routed 1,154 applications worth Rs 26 lakh received from 400 clients. Many of his clients signed up for more than 1 SIP.
The growing use of technology in transaction execution is helping distributors increase volume at a low cost. This is evident by the upward momentum in SIP inflows. The industry received SIP inflows of Rs 43,921 crore in FY 2016-17, which increased to Rs 67,190 crore in FY2017-18, a jump of 53%. The industry now has 2.44 crore SIP folios.
This post is authored by Ravi Samalad.
