What should SIP investors do amid market volatility? From diversification to allocation — Here's what experts said
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- AMFI data showed equity mutual funds drew nearly ₹23,000 crore in May, down 40% year-on-year but marking the 63rd consecutive month of net inflows since March 2021.
- SIP contributions rose 7.5% to ₹32,087 crore in March even as the Nifty slipped 6.4% month-on-month and FPIs dumped a record ₹1.18 lakh crore.
- India's SIP ecosystem now spans 9.64 crore accounts with ₹17.12 lakh crore in SIP AUM and average monthly inflows of ₹30,953.83 crore, per AMFI.
- Sriram BKR of Geojit Financial Services credited rising adoption of systematic saving, online platform ease, and equity performance for attracting millennials to SIPs as a wealth-creation tool.
- Varun Gupta of Groww Mutual Fund said the post-COVID recovery reinforced the importance of staying invested through cycles, noting SIPs have become a "financial habit rather than a market call."
- Nehal Meshram of Morningstar attributed participation growth to a steady shift from physical assets like gold and real estate to financial assets, with SIP auto-debit removing emotional timing decisions.
- Subhendu Harichandan of Anand Rathi Wealth advised stepping up SIP contributions during corrections to accumulate more units at lower valuations, arguing disciplined investors are "always rewarded when markets recover."
Why it matters: With 9.64 crore SIP accounts and ₹17.12 lakh crore in AUM, India's domestic retail base has become the structural counterweight to volatile FPI flows — March's record ₹1.18 lakh crore FPI selloff coincided with a 7.5% rise in SIP contributions, giving retail investors enough firepower to absorb institutional exits without derailing equity inflows.
