New Delhi: At the Money9 Financial Freedom Summit 2025, top mutual fund industry leaders addressed concerns over market volatility, emphasising long-term investment strategies and the resilience of systematic investment plans (SIPs).
A Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC, acknowledged the current uncertainty but reassured investors that market corrections are normal after a period of rapid growth. “The volatility we see today is part of the market cycle, necessary to correct excess valuations,” he said, advising investors to focus on long-term horizons of 10-15 years.
Kalpen Parekh, MD & CEO of DSP Mutual Fund, highlighted that markets operate in cycles—rising, staying flat, and declining in equal measure. He urged investors to shift from short-term expectations and see this phase as an opportunity. “For disciplined long-term investors, this is Amrit Kaal—a great time to accumulate more units at lower prices.”
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SIP investments to continue strong growth
On concerns about a slowdown in SIP inflows, Raghav Iyengar, CEO of 360 ONE Asset, expressed confidence in their resilience. “Urban middle-class investors drive SIP growth, and after the Union Budget 2025, disposable income is likely to increase, boosting SIP contributions,” he said.
Jimmy Patel, MD & CEO of Quantum AMC, echoed this sentiment, stating that SIPs remain the best wealth-creation tool amid inflation. “Bank FDs do not beat inflation, but mutual funds can help investors build wealth over time.” He urged investors to maintain discipline, continue investments, and diversify across asset classes.
Expanding investor base and future outlook
Balasubramanian projected significant investor growth, stating, “Currently, India has five crore mutual fund investors; this number can rise to 25 crore. While some investors are exploring international markets, they will return as India progresses towards a developed economy by 2047.”
Kalpen Parekh welcomed the introduction of the Rs 250 SIP, predicting it would encourage new investors. Iyengar summarised his advice with, “SIP karo, mast raho”—advocating for consistent investing and asset diversification. Patel added, “SIP has been around since 1995; it is a tried and tested path to financial security.”
Despite short-term fluctuations, industry leaders reaffirmed that staying invested in SIPs and mutual funds remains the most effective strategy for wealth creation.
