As the Nifty 50 recorded a nearly 5% fall in the past 12 months, the SIP momentum among retail investors has moderated. A report by Motilal Oswal said on Tuesday that new SIP registrations in August were the lowest since April.
In the previous market corrections over the past five years, lump-sum flows tended to accelerate as investors viewed declines as long-term opportunities, it said. “However, under the current macro backdrop — characterised by tariff uncertainty and geopolitical tensions — investors appear more cautious and are mainly staying on the sidelines.” According to it, the trend is more pronounced with the direct channel.
How will GST cuts boost consumer demand?
With the festive season approaching and GST rate cuts supporting consumption demand, household spending is likely to take precedence over financial investments, the report said.
SIP closures, however, have been falling, with August recording the lowest number of closures since November last year, the report said. Distribution-led models have experienced strong trends in the recent past. “However, competitive intensity among B2B2C channels is increasing, leading to higher sharing with distributors,” it said.
Gaming sector liquidity to shift towards mutual funds?
Meanwhile, option money and gaming-sector liquidity represent potential incremental pools of capital that could shift toward mutual funds with the right incentive structures. “In the medium term, these macro/policy nudges will add meaningfully to the B2B2C distribution ecosystem’s depth,” the report said.