Retail investors prune expectations

They are willing to accept 10-12% returns from equities, prepared to remain invested for long term

It seems that retail investors in the equities market are maturing. The steady rise in the monthly systematic investment plan (SIP) inflows, up to Rs 4,500 a month now, is a clear example of that. “About 50 per cent of inflows now come through SIPs. Investors don’t want to worry about getting their timing right when they make a lump-sum investment, and hence opt for SIPs and STPs (systematic transfer plans),” says A Balasubramanian, chief executive officer (CEO), Birla Sun Life Asset Management Company (AMC).

Fund managers and financial planners say that the expectations have also been pruned significantly. “My