Share Market News / SIP is the biggest weapon of savings, it will bring a tsunami of Rs 52 lakh crore in the market

Indian investors are adopting SIPs as a new savings habit in rapidly changing times. While previously hesitant, investing has now become increasingly disciplined and consistent. Reports indicate that retail investors are often outperforming HNIs, and that ₹52 lakh crore of domestic investment will flow into the market in the coming years.

Share Market News: Indian investors are going through a major transformation today. While there was hesitation and confusion about investing earlier, Systematic Investment Plans (SIPs) have revolutionized the world of investing. It's no longer just a means to invest in equities, but has become a new mantra for disciplined savings. An Economic Times report, quoting Firoz Aziz, Deputy CEO of Anand Rathi Wealth, states that SIPs have completely transformed the financial habits of Indians.

SIP: More than an Investment, a Habit

For a long time, people in India saved, but lacked the habit of investing. SIPs have radically changed this mindset. Today, retail investors, meaning ordinary people, regularly invest a fixed amount in mutual funds without worrying about market fluctuations. Firoz Aziz says, "If you ask an auto or taxi driver if they've checked the value of their SIP, the answer will be 'no.' This means that SIPs have now become a part of their daily routine." This demonstrates the power of disciplined investing, which has now become deeply ingrained in Indian society.

Common Investors vs. HNIs: A Triumph of Discipline

Interestingly, ordinary investors who use SIPs often outperform large HNIs (High Net-worth Individuals). The 2020-21 data illustrates this. During the COVID-19 pandemic, when markets were in a panic and people were withdrawing their investments, SIPs generated investments worth ₹88,000 crore. Meanwhile, other equity mutual funds saw withdrawals of ₹1.25 lakh crore, and portfolio management services (PMS) suffered losses of ₹2 lakh crore. This clearly demonstrates that discipline and regularity are the real game-changers in the investment world.

Savings Now Turning to the Market

After the COVID-19 pandemic, a significant shift in the priorities of Indian investors has also been observed. Previously, people prioritized investing in gold, land, or other physical assets, but now the trend towards financial investments is increasing. According to Reserve Bank of India (RBI) data, the total savings of Indian households have reached ₹950 lakh crore by March 2025. Of this, approximately ₹70 lakh crore is invested in equities and mutual funds. This shift indicates that Indians are now ready to invest their savings in the market.

Future Projection: Investment of ₹52 lakh crore

Feroz Aziz estimates that domestic investment of at least ₹52 lakh crore will come into the Indian markets over the next eight years. This figure is significantly higher than the ₹3 lakh crore in the previous eight years and the ₹15 lakh crore in the four years since COVID. This not only reflects the growing confidence of Indian investors but also proves that domestic investors have now become the backbone of the Indian stock market.