Mutual fund leaders urge investors to stay the course amid volatility

At the Business Standard BFSI Summit 2025, mutual fund leaders said India's market remains resilient and projected SIP sizes could rise from ₹3,000 to ₹5,000 in the next 3-4 years

Investors should stay disciplined and leave the handling of market volatility to fund managers, said top mutual fund executives at the Business Standard BFSI Insight Summit 2025 in Mumbai on Friday.

 

Speaking at the summit, they also expressed confidence that the average size of Systematic Investment Plans (SIPs) could rise from ₹3,000 to ₹5,000 in the next few years as incomes increase and financial awareness deepens.

 

In a panel discussion titled 'How soon do we double AUM, investor count', Navneet Munot, MD and CEO, HDFC AMC; DP Singh, deputy managing director and joint CEO, SBI MF; Vetri Subramaniam, CEO-designate, UTI AMC; Sid Swaminathan, MD and CEO, JioBlackRock AMC; and B Gopkumar, MD and CEO, Axis MF expressed that the markets are resilient and volatility is an integral part.

 

'Leave volatility to fund managers'

UTI AMC's Subramaniam advised investors not to react to short-term market swings. “When you are trying to achieve your financial goals, there is no point in second-guessing and reacting to the market,” he said. “Stick to your financial plan and asset allocation. Leave it to the fund manager to deal with volatility and valuations.”

 

He added that investors benefit most when they stay invested for the long term. “As long as you stay with your investments for your entire financial journey, you will reach your goals,” he said. 

Markets resilient despite volatility

SBI MF's DP Singh said India’s markets have shown strong resilience despite phases of volatility. “Our markets are very resilient. Any fall is seen as an opportunity. Retail investors are showing maturity by continuing SIPs even when markets dip,” he said.

 

HDFC AMC's Navneet Munot said, “We have funds that go back 30 years, and investors have seen many periods of volatility. What matters is consistency."

 

“Our SIP book has grown from ₹4,000 crore in 2017 to ₹29,000 crore now. That shows the growing maturity and resilience of investors,” he added.

Growing SIP ticket size

While SIP accounts have grown sharply, Singh said the average investment amount per SIP remains small. “SIP numbers have tripled, but the average ticket size is still around ₹3,000. It should go up to ₹5,000 in three to four years as incomes rise,” he said.

 

Munot added that increasing financial literacy and investor trust will be key to this growth. “Technology, transparency, and training have helped build trust. We need to keep strengthening that trust among investors,” he said. 

Expanding reach through tech, education

JioBlackRock AMC's Swaminathan said digital platforms are bringing new investors into the fold. “We already have about 750,000 investors, and 10 per cent of them are completely new to the industry,” he said. “Nearly 40 per cent of our retail assets come from beyond the top 30 cities, which is higher than the industry average.”

 

He added that using artificial intelligence and regional languages can help reach more people. “Technology lets us deliver bite-sized, multilingual financial education across the country,” he said.

 

Meanwhile, Axis MF's Gopkumar said: “Fintechs are doing a lot of the heavy lifting. The industry is supporting them by lowering ticket sizes and helping attract new investors,” he said.

 

He added that fintech platforms are helping traditional fund houses reach newer customer segments more efficiently. “I’m quite hopeful that three years from now, many more customers who start their journey through fintechs will eventually come to traditional fund houses. These new channels are becoming powerful touchpoints to engage with investors,” he said.

Rising popularity of passive funds

Growing interest in passive funds is a welcome trend, said Munot, adding that while passive investing is gaining ground globally, India’s active funds have delivered strong long-term performance.

 

“Few fund houses globally can match the 25–30-year track record of outperformance that Indian active funds have shown,” he said, adding that the decision between active and passive should ultimately rest with investors and their advisors.