The Effect of Macroeconomic Factors on the Contribution of Systematic Investment Plans of Mutual Fund Schemes in India

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Authors: M. Jayanthi Rohini. S
Cited by: 0

Abstract

This study investigates the effect of selected macroeconomic factors on the Systematic Investment Plan (SIP) contributions to mutual funds in India over the period from April 2016 to March 2024. The key objective is to examine how macroeconomic variables such as Dollar Rate, Foreign Exchange Reserve, Inflation, Gross Domestic Product (GDP), Sensex, and Interest Rate influence SIP contributions by using multiple regression analysis. The results confirm that Dollar Rate, GDP, Sensex, and Interest Rate significantly impact SIP contributions, while Foreign Exchange Reserve and Inflation do not. The study concludes that SIP investments are sensitive to major macroeconomic movements and calls for careful policy considerations to enhance retail participation in mutual funds.

Fields of Study & Subjects

Financial Markets and Investment Strategies Financial Literacy Pension Retirement Analysis Financial Analysis and Corporate Governance

Publication details

Journal / source
Journal of Informatics Education and Research
Publication date
12 January 2026
Language
EN