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Kalpen Parekh, MD & CEO of DSP Mutual Fund, expects systematic investment plan (SIP) growth to slow from its recent pace, but says investors are unlikely to give up unless markets see a significant correction. His view is a forecast, not a guarantee: he also cautions that flows are difficult to predict and years of disappointing returns could weaken investor resilience.
What Parekh expects from SIP investors
In a Mint interview published 9 October 2026, Parekh said, “SIP growth may not continue at the pace of the last five years, but I don’t expect investors to give up unless we see a significant market correction.” He links the persistence of SIP investing partly to the habit of investing regularly from monthly income, but does not claim that participation or contributions will keep rising at a particular rate.
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He also flags a limit to that resilience: “Flows are difficult to forecast, and if an asset class disappoints investors for five, six or seven years, some of that resilience could weaken.” That is an important qualification to the headline. SIP activity is not immune to investor responses to prolonged weak performance.
What the latest SIP contribution figure does—and does not—show
The Association of Mutual Funds in India (AMFI) reported that SIP contributions collected in August 2026 were ₹32,297 crore. This is a one-month contribution total, not an investment-return figure, an account-level performance measure, or evidence that contributions will continue at the same level.
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How an SIP works—and what it cannot do
A systematic investment plan is a way to invest a fixed amount in a mutual fund scheme at fixed intervals. When the scheme’s net asset value (NAV) is lower, the same contribution buys more units; when the NAV is higher, it buys fewer. This rupee-cost averaging can spread purchases across different prices, but it does not assure profit or protect against losses in declining markets, as AMFI explains.
An SIP is a contribution method, not a return-producing guarantee. AMFI’s risk guidance says mutual fund schemes are not guaranteed or assured-return products, and their investment values may rise or fall.
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Should you stop an SIP when markets fall?
A market decline alone does not answer whether an SIP should continue. The relevant question is whether the investment still matches the goal, time horizon, and level of volatility you can tolerate. Regular contributions can keep an investing routine in place during fluctuating markets, but averaging does not prevent losses or make an unsuitable investment appropriate.
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How to think about time horizon and fund category
Parekh says equity exposure should reflect both the time until the money is needed and the investor’s ability to tolerate volatility. As examples, he says he would avoid equities for money needed within six months and could consider equities for a need ten years away. These are his illustrations, not universal rules or personalized recommendations.
He also frames fund categories around risk tolerance rather than declaring one category best:
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| Investor consideration | Category mentioned by Parekh | How to interpret the comparison |
|---|---|---|
| Very long horizon and ability to tolerate volatility | Flexi-cap | Parekh says such an investor may consider this category; it is not a universal ranking or a recommendation of a particular scheme. |
| Less tolerance for large fluctuations | Multi-asset or aggressive hybrid | Parekh says these may be more appropriate for someone unable to tolerate large swings. Their suitability still depends on the investor’s needs and allocation. |
The distinction is about the investor’s comfort with fluctuations and the approach to asset allocation. It does not establish that a category will outperform another or remove the need to understand a scheme’s risks.
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What to take from the forecast
Parekh’s expectation is that SIP growth may moderate without investors broadly abandoning the habit, unless there is a significant correction. The August 2026 contribution figure shows the scale of contributions in that month, while AMFI’s guidance explains why regular investing and rupee-cost averaging should not be mistaken for protection from loss. Decisions about an individual SIP should remain tied to the goal, the time available, and the risk the investor can bear.
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