Mutual Fund SIP Tip: Stock market success! After bleeding heavily post-COVID-19 pandemic, Indian stock markets have successfully managed an over 30 per cent pull-back rally. Those investors who have indirect investment in the markets through mutual funds and SIP (Systematic Investment Plan), they can have a good chance to make money in this pull-back rally. According to the tax and investment experts, one should increase one's SIP amount and thereby boost NAV. They said that a greater NAV will lead to higher maturity because it's the number of NAVs that will decide the maturity amount.

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Speaking on the mutual funds SIP strategy that can fetch more money at the time of withdrawal, Jitendra Solanki, a SEBI registered tax and investment expert said, "Mutual Fund SIP are done for the long-term and one should not bother about the stock market crash or rise. However, in the current pull-back shown by the stock market, one should think of increasing the SIP amount using the mutual funds step-up strategy." 

Solanki said that this trick will help a mutual fund SIP investor to get more NAVs on the amount invested. "Adopting buying at lower levels and selling at higher levels strategy, I would advise mutual fund SIP investors to step-up SIP amount and earn more NAVs than the usual SIP amount value. It will help investor to get the compounding benefits on the interest earned by the SIP amount," he suggested.

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Manikaran Singhal, a SEBI registered tax and investment expert said, "One should continue with one's mutual fund SIP keeping investment goal in mind rather than the stock market rise or fall. Checking the NAV value on a day to day basis is not advisable as it may hit one's SIP return in the long-term."

Advising investors as to how one can make merry on this stock market pull-back rally, Manikaran Singhal said, "Investors should think of investing in large-cap, mid-cap and multi-cap mutual funds and if they already have investments in such plans, then this is the time when they should increase the mutual funds SIP amount and get more NAVs to inch closer to their long-term investment goals faster."