Mutual Funds: Heroes of Market Resilience

R@hul Potu / 31 Oct 2024/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, MF - Editorial, Mutual Fund

The Indian equity market has faced its share of turbulence in recent times, with external pressures and global uncertainties leading to increased volatility.

The Indian equity market has faced its share of turbulence in recent times, with external pressures and global uncertainties leading to increased volatility. However, amidst this upheaval, one factor has provided much-needed stability: mutual funds. Specifically, domestic mutual funds have matched the aggressive selling of foreign institutional investors (FIIs), helping to contain the market’s downward trajectory. And behind these resilient domestic funds is a vigorous movement that deserves recognition—retail investors like you. [EasyDNNnews:PaidContentStart]

Through systematic investment plans (SIPs), you have become a formidable force in the Indian equity market. In September 2024, SIP inflows reached an all-time high of ₹24,509 crore, marking an astounding 52.78 per cent increase from ₹16,042 crore in the same month last year. The total SIP assets under management (AUM) is currently at around ₹14 lakh crore, a steady rise from ₹13.09 lakh crore in July 2024.

After a temporary dip during FY20-21, when many investors shifted from mutual funds to direct equity, inflows through SIPs have been steadily rising. The pandemic-related volatility caused some moderation in early FY22, but since then, every quarter in the last 15 quarters has recorded higher SIP inflows than the previous one. While market corrections may cause anxiety among investors, this is exactly the time when increasing your SIP contributions can yield the best results.

Many investors may be tempted to stop their SIPs during a downturn, believing that their investments will fall in value. However, the market’s cyclical nature often rewards those who remain disciplined and invest consistently through downturns. Our cover story this month dives deep into how increasing your SIP contributions during such periods can accelerate your journey toward financial goals. As we approach the festive season of Diwali, let us celebrate the spirit of disciplined investing that continues to strengthen our markets. Wishing you and your family a prosperous and joyful Diwali !

Shashikant Singh
Executive Editor

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