Global brokerage Bernstein said systematic investment plans (SIPs) remain a structural savings habit for Indian investors, but warned that domestic equity inflows could face near-term turbulence if markets fail to generate meaningful returns over the next 12 months.
In a report titled “Indian Capital Markets: Markets are on a clock to generate returns”, the brokerage said markets have been under pressure since peaking in September 2024 amid high valuations, weaker earnings growth, concerns around India’s AI opportunity, Middle-East tensions and currency movements.
Bernstein said strong market returns during CY23 and 9MCY24 have helped sustain domestic inflows so far. However, as those gains gradually roll off from trailing return calculations, investor flows may come under pressure if returns remain muted.
Resilient inflow
The brokerage’s proprietary investor survey showed that SIP investors have largely remained resilient despite market volatility. Around 35 per cent of respondents said they increased their SIP allocations over the past year, while another 38 per cent maintained their existing investments.
However, Bernstein cautioned that investor patience may not be unlimited during prolonged periods of weak returns. Nearly one in three respondents said they would wait only another 3 to 12 months before reassessing their SIP allocations if market performance remains lacklustre. Another 17 per cent said they could wait up to two years before reconsidering allocations.
The report added that about 38 per cent of respondents claimed they would continue SIP investments even if markets fail to generate returns over the next three years. Bernstein, however, noted that actual investor behaviour during periods of sustained underperformance could differ from stated intentions.
The brokerage also highlighted that investors in regular mutual fund plans appeared more resilient compared to direct-plan investors. Bernstein said direct-plan investors showed greater sensitivity to returns, indicating that fund houses with higher dependence on direct-plan flows may witness more volatility in inflows during weaker market phases.
Despite the near-term caution, Bernstein maintained a constructive long-term view on domestic flows, saying SIPs continue to remain deeply embedded in India’s retail investment ecosystem.
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Published on June 9, 2026
