Periods of market swings, he said, tend to highlight the benefits of process-driven investing.
“Mutual funds offer built-in diversification and professional management, while SIPs allow consistent participation without the need to time market entries or exits,” Haria noted.
In contrast, he explained, trading results depend heavily on timing, whereas long-term, diversified investing aligns better with goal-based wealth creation.
Why SIP stoppages don’t necessarily reflect negative sentiment
Haria pointed out that pauses in SIP contributions often rise during volatile periods, but they are frequently due to routine or temporary reasons, such as changing bank mandates, platform switches, merging multiple SIPs, or adjusting investment sizes.
Cashflow requirements—including EMIs, tax obligations, or job changes—can also lead to short-term halts.
“Stopping a SIP does not necessarily mean investors are withdrawing funds. Net SIP flows and the duration of continued investments give a clearer picture,” he said.
How passive instruments and precious metal ETFs support investors
Index funds and ETFs, Haria noted, are not substitutes for equity trading but serve as behavioral stabilisers.
“They provide low-cost, transparent, and rule-based exposure without the noise of stock selection or timing calls. Precious metal ETFs offer diversification and psychological comfort during periods of equity drawdowns or inflation concerns,” he said.
The key, he added, is allocation and mindset.
Aggressive investors may maintain higher direct equity exposure while using index funds as core holdings, whereas more conservative investors may rely on index and precious metal ETFs for risk control and balance.
Which products are likely to gain attention in 2026
Broader indices such as the Nifty 500, offering wider representation across market segments, and the Nifty Next 50, blending stability with growth potential, are expected to draw focus. Factor-based indices—low-volatility, quality, and momentum—are likely to see wider adoption as investors seek smoother equity participation and rules-based exposure.
Gold and silver ETFs, Haria said, will continue to act as structural diversifiers rather than primary return drivers, providing balance in increasingly market-linked portfolios.
“The question is not whether to invest in these instruments, but how much. Their value lies in helping investors make consistent, reliable decisions over time, especially amid market volatility,” Haria said.