SIPs Stay Strong Despite Market Correction, Why Investors Are Increasing Their Monthly Investments

Despite the Nifty 50 correcting sharply from its September 2024 peak, mutual fund investors have seen relatively lower portfolio declines as mid- and small-cap stocks have held up better. Shweta Rajani, Mutual Fund Head, Anand Rathi Wealth, says active fund management has also helped portfolios generate excess returns during the correction. She notes that investors have continued to increase their SIP contributions, with monthly SIP flows nearing ₹32,000 crore and annual SIP numbers rising by over 25% in recent financial years. Stronger performance in the mid- and small-cap segments could help SIP flows remain steady despite market volatility and uncertainty.