Financial expert Anil Rego of explains why systematic investments are an investor's best bet in the current volatile market.
Over a dozen mutual fund houses in India have temporarily suspended fresh subscriptions in their gold fund of funds (FoFs) and gold-silver FoFs, a move believed to be influenced by directions from the Securities and Exchange Board of India (Sebi) ahead of the festive season.
Indian mutual funds experienced a nearly 5 per cent growth in average quarterly assets under management (QAAUM) in the second quarter of FY27, reaching approximately ~87.2 trillion, despite significant equity market turbulence and corrections in largecap and some debt segments.
Equity mutual fund schemes recorded a net inflow of Rs 38,306 crore in September, a 31 per cent increase from the previous month, driven by strong investor interest in mid-cap and small-cap funds despite stock market volatility and foreign portfolio investor (FPI) sell-offs.
Smallcap funds have emerged as the primary beneficiaries of the systematic investment plan (SIP) wave in Indian mutual funds over the past five years, with their SIP assets surging to approximately 1.83 trillion by March 2026, a fivefold increase.
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Foreign Portfolio Investors (FPIs) have withdrawn Rs 48,056 crore from Indian equities in October, driven by elevated crude oil prices, Middle East tensions, inflation concerns, and weak corporate earnings, though selling pressure moderated towards the end of the month.
Sustained selling by foreign investors is weighing on domestic equities, with the benchmark Sensex and Nifty 50 down 15.60 per cent and 14.4 per cent, respectively, this year.
It's also important to understand the rationale behind choosing particular stocks and when to sell.
Net SIP inflow is calculated by subtracting redemptions from gross SIP investments.
Liquidity stress in smallcap funds has fallen to its lowest level since February 2024, with the average time to liquidate 50% of portfolios dropping to 27 days in June from a peak of 44.2 days in January 2026, driven by a sharp recovery in smallcap stocks and increased trading volumes.
Equity-oriented mutual fund schemes in India experienced a 5 per cent decline in net inflows in April, reaching Rs 38,440 crore, while monthly Systematic Investment Plan (SIP) contributions also saw a decrease.
The decision depends on factors like your capital on hand, investment timeframe, and comfort level with market fluctuations. In this blog, let us understand how both approaches work.
DIIs invested $22.8 billion in Indian equities in Q2CY26.
'Treating stock brokers as merchants for MDR is fundamentally misplaced.'
Domestic institutional investors (DIIs), driven by the popularity of mutual funds, have emerged as significant stabilising forces for Indian capital markets amidst global volatility and foreign portfolio investment (FPI) outflows, according to Sebi whole-time member Amarjeet Singh.
'Separate needs from wants and minimise discretionary spending.'
Smallcap funds topped the net inflow chart for the second consecutive month, as investors poured record Rs 7,973 crore into one of the best-performing MF categories.
Systematic Investment Plan (SIP) returns for smallcap and midcap mutual funds have seen a significant rebound, with average one-year SIP returns now at 19.1 per cent for smallcap funds and 13.5 per cent for midcap funds, according to Value Research data. This recovery is expected to revive momentum in the retail mutual fund industry, which had experienced a moderation in growth indicators.
It could also clear stalled projects and review various subsidies on the energy, food and fertiliser fronts.
Net mutual fund inflows into active equity schemes in India plummeted by 40 per cent month-on-month in May, reaching a one-year low of 22,908 crore, primarily due to weaker lump-sum investments and increased redemptions amidst significant market volatility and global uncertainties.
'Ultimately, banks are a channel for people to get some long-term return, and this means banks need to adjust their asset-liability mismatch.' 'Customers also need long-term deposits, say those of three-five years. How would they get them if returns on those deposits do not climb?' 'Otherwise, on fixed deposits, a senior citizen doesn't get anything.'
List all unavoidable expenses such as rent, groceries, transportation, education and medical bills.
This works only for longer-tenured ones such as income funds, as the element of interest rate risk is reduced.
If India does get $100 billion a year in FDI, it would be a game-changer in every possible way. FPIs would come rushing back, AI or no AI, points out Debashis Basu.
At Rs 4.07 trillion, gross inflows were just shy of the record Rs 4.34 trillion mobilised in H2 of 2024, making it the second half-yearly period in which inflows crossed Rs 4 trillion.
Net investments into equity mutual fund schemes in India remained elevated at approximately 38,440 crore in April, despite a slight dip from March's high and a 3% month-on-month decline in Systematic Investment Plan (SIP) inflows.
International mutual fund schemes have seen a significant resurgence in investor interest, attracting approximately Rs 7,600 crore in net inflows over the past year, a stark reversal from previous outflows, driven by their strong outperformance against domestic markets and limited AI-linked investment opportunities in India.
'The Rs 30,954 crore inflows recorded in May 2026 reflects around 16 per cent year-on-year rise.'
Understanding the most common mistakes during market downturns can help you protect your investments and stay focused on your long-term financial goals, says Ramalingam Kalirajan
Gen Z is a generation that has been raised in a digital-first era, where shopping, payment, and monetary transactions are done within seconds via smartphones. Moreover, the new flexibility offered by investing platforms is encouraging young investors to opt for investment frequencies that align with their spending patterns and lifestyle. This change has brought up an interesting debate on whether daily and weekly SIPs are better than monthly investments.
Hyundai Motor India Ltd (HMIL) is set to launch a localised mass-market SUV built on a dedicated EV platform, expanding its EV portfolio beyond the IONIQ 5 and CRETA Electric, while also significantly boosting its charging infrastructure and training its workforce.
'Every period of excessive optimism eventually gives way to a correction, while periods of extreme pessimism often create the best investment opportunities.'
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
Urban Indian millennials are caught in an algorithmically amplified consumption spiral where social media normalises spending patterns that systematically undermine retirement security.
The majority of investors fail to reach their financial goals, even if they started with a well-defined financial strategy. This isn't just about market volatility; it's a complex interaction of factors that include human psychology, inconsistent habits and lack of proper monitoring.
The majority of investors fail to reach their financial goals, even if they started with a well-defined financial strategy. This isn't just about market volatility; it's a complex interaction of factors that include human psychology, inconsistent habits and lack of proper monitoring.
An employee whose financial future is 60-80 per cent dependent on a single company's growth trajectory has no genuine safety net.
'Periods of heightened volatility, driven by global events such as tariffs and geopolitical tensions over the past year-and-a-half, can make some investors pause or discontinue their investments.'
