SIPS becomes a core saving instrument, domestic flows to drive RS 52 Lakh Crore to the Indian markets: Feroze Azeez

Systematic investment plans (SIPs) are no longer treated as investment vehicles for shares, but are increasingly seen by investors as a disciplined savings instrument, said Feroze AzeEZ, Vice -Cakeo of Anand Rathi Wealth, in an interaction with ET NOW.

According to Azeez, Indian investors embrace – known for their strong savings habits but weak investment practices – now Sips as a stable way to participate in shares. “Ask a driver if he has checked his SIP value in the past six months – he will probably say no. That shows that SIPS becomes part of India’s saving DNA,” AzeEZ noted.

Retail performs better than HNIS in discipline

AzeEZ emphasized that high -quality people (HNIS) often find out than retail investors due to poor market timming. In FY21, while the Nifty was on average 10,800, other investment funds than SIPs of £ 1.25 Lakh Crore and portfolio management services (PMS) saw more than £ 2 lakh crore. SEIP inflow, on the other hand, was a positive £ 88,000 crore. “This data prove that retail investors have been much more disciplined than HNIS,” he said, pointing out that sips of insulated individuals of market volatility isolated while market volatility was promoted.

Massive domestic intake ahead

Since the pandemic, the Indian household savings have shifted considerably to financial assets. According to the RBI data (March 2025), households have £ 950 Lakh Crore in savings, with £ 70 Lakh Crore in direct shares and investment funds. “Post-Covid, domestic institutions have £ 15 lakh crore of domestic guidance in the domestic Fows in Indian equities in the coming eight years,” AzeEZ predicted.

Capital market shares to play a greater role

Azeez expressed trust in the Nifty Capital Markets Index, which currently includes 15 companies that include asset managers, asset managers and financial infrastructure companies. He argued that as India becomes a $ 10 trillion economy, more capital market shares represent in the most important Nifty index.

“Capital market companies have implied growth. If companies avoid mistakes and serve customers well, the income is automatically compiled,” he said, adding that the average customer portfolio of Anand Rathi has achieved 14.5% returns annually in the past 11 years.

Active versus passive debate in India

AzeEZ was critical of the active-versus-passive investment debate about the way in which Indian indices are constructed, and called them ‘quirky’. He noted that around 130 companies with market capitalization above £ 1,000 crore are excluded from NSE 500 due to index rules.

“Large AMCs can invest passively as cheap investing, but in the context of India, a poor index construction can mean the destruction of value. Active managers still have a strong role to play,” he argued, “he argued.

Market forecasts

With GST and tax reforms that increase disposable income, domestic stock participation will rise further. AzeEZ expects that both retail investors and institutions increasingly channel savings in shares and capital market companies, thereby creating long -term compound opportunities. “The journey from India to an $ 10 trillion economy will require a deeper financial financing of savings and SIPS turns out to be the basis of that transformation,” he concluded.