# SIPs May Slow, But Investors Unlikely to Give Up > DSP Mutual Fund CEO says SIP flows could weaken with prolonged weak returns but investors won't quit without a significant market correction. - Title: SIPs May Slow, But Investors Unlikely to Give Up · mint - Summary: DSP Mutual Fund CEO says SIP flows could weaken with prolonged weak returns but investors won't quit without a significant market correction. DSP Mutual Fund… - Keywords: sip, dsp mutual fund, kalpen parekh, equity markets, investor behavior, market correction, asset allocation, money, business, SIPs, May, Slow - Source: mint — https://livemint.com/market/stock-market-news/kalpen-parekh-dsp-mutual-fund-sip-inflows-systematic-investment-plans-equity-markets-asset-allocation-mutual-funds-11791481524802.html - Author: Dipti Sharma - Published: 2026-10-09T05:15:42+00:00 - Read time: 2 min - Topics: sip, dsp mutual fund, kalpen parekh, equity markets, investor behavior, market correction, asset allocation, money, business ## SIP flows remain resilient SIP flows have proved remarkably resilient despite weak equity returns, says DSP Mutual Fund CEO Kalpen Parekh. > Flows are difficult to forecast, and if an asset class disappoints investors for five, six or seven years, some of that resilience could weaken. ## Investor resilience test Parekh warns prolonged weak returns could test investor faith if equities disappoint for years. > if an asset class disappoints investors for five, six or seven years, some of that resilience could weaken ## SIP growth may slow SIP growth may not continue at the pace of the last five years but investors won't give up without a significant market correction. > 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 ## New investors continue New investors enter steadily as employment rises and confidence in SIPs and equities strengthens. > new investors continue to enter as more people get jobs and salaries, and confidence in sips and equities is higher than it was in the past ## Key risks for markets Parekh identifies sharp global interest rate hikes or oil price spikes as major risks, especially if the West Asia war escalates. > the key risks are a sharp rise in global interest rates or oil prices, particularly if the west asia war escalates ## Valuations near fair value Banks, insurance and technology valuations have come closer to fair value, allowing dsp to deploy money in these segments. > valuations across banks, insurance and technology have come closer to fair value ## Time horizon matters Investors should match their time horizon with asset allocation: short-term goals need conservative options, long-term goals benefit from equities. > if you need the money within six months, you should not be in equities; if the need is 10 years away, equities make more sense because bonds may not beat inflation ## Volatility strategy Invest when markets fall rather than rising to benefit from lower navs and avoid temporary capital losses. > if you understand volatility, invest when markets fall or move sideways rather than getting overly excited when they rise ## Asset allocation advice Parekh recommends 40% of portfolio outside equities, bonds, debt funds, gold and precious metals, for balanced risk management. > around 40 percent of my own portfolio is outside equities, in bonds, debt funds, hybrid portfolios, gold and precious metals ## Common investor mistakes Investing without anchors, chasing past performance, and ignoring underlying business metrics are top mistakes investors make. > the first is investing without anchors, based on someone else’s view rather than your own needs, time horizon and risk tolerance ## Downside risk assessment Investors must evaluate worst-case scenarios to avoid permanent capital loss when choosing funds. > if you have a three-year horizon and need the money for a house, look at the worst three-year outcome ## Gold as diversifier Gold has low correlation with equities but high volatility; Parekh reduced gold from 22% to 13% of his portfolio. > personally, i have reduced gold from 22 percent of my portfolio to around 13 percent ## SIP mechanism benefits SIPs ensure discipline by buying through market highs and lows, improving returns when markets fall first. > the path markets take also matters: if markets fall first and recover later, sip returns can be better because more units are accumulated at lower navs ## What happens next Parekh expects SIP inflows to remain resilient but may shift allocations if valuations reset further. > if valuations reset further, i may move towards a more aggressive equity allocation ## Key takeaway DSP Mutual Fund CEO Kalpen Parekh warns SIP inflows may slow but investors won't abandon equities without a major market correction.