#25 For 2025: Will retail investors brave market swings to stay put?
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One of the steadiest sources of money flows into the stock market in recent years faces the risk of ebbing in 2025 if equities fail to repeat performances in the recent past. Flows through systematic investment plans (SIPs) into equity mutual funds-the equivalent of recurring fixed deposits in banks-crossed a record ₹25,000 crore every month in the past three thanks to strong returns. But amid forecasts for a tough year for stocks in 2025, market participants are wondering whether individual investors will pour money into equity schemes. SIPs have been a convenient way for retail investors to put small amounts into mutual fund schemes every month. Of this, 90-95% went into equity-oriented funds. The numbers speak about their popularity. In FY21, flows through SIPs were ₹8,007 crore, doubling from ₹3,660 crore in FY17. One reason for their popularity is strong returns from equity mutual funds. Investments made in Nifty 50 through SIPs have...