On a trek last weekend, I met two people who were poles apart, yet wrestled with the same struggle, achieving their financial dreams. Conversation with them offered me a deeper understanding of the Indian middle-class investors. Both had actively participated in investing through Systematic Investment Plans. Both had been influenced by an external source; and although, one of them was informed about the basics of finance, both of them lacked clear planning and guidance from a professional.
Indian middle-class participation in financial markets is consistently rising. With NSE data reflecting a rise of inflows crossing over 25,000 crores by late 2025 making up a significant amount of the market. While investors can be classified in many ways, two broad groups stand out: the informed and the followers
The informed investors grasp the core concepts of the market such as compounding, market volatility, inflation, and rupee depreciation. They wish to grow and sustain their wealth despite market crashes.
On the other hand, the followers get inspired by the first group and begin their investments on a whim. Their reasons for investing can differ from saving for the future, the excitement of trying something new and the simple dopamine rush of seeing their money grow. While all reasons are fair and valid, both the categories have some characteristics in common.
Unclear goals:
The weekend trek which led me to this conversation was quite tiring, the route was bumpy and after a point, the destination felt unreachable. Even so, the thought of having the privilege to witness the view from the summit kept me going. Much like this trek, investing too is a bumpy journey.
Many begin investing in SIPs due to its accessibility. However, untethered SIPs lack horizon, giving a rise to panic selling and withdrawal during market volatility. 75% of new Indian investors quit early without a clear milestone.
Untethered SIPs become generic savings encouraging redemptions when short-term needs arise. Ensuring that your SIPs have a clear goal attached to them brings discipline and allows you to focus on the bigger picture during fluctuations.
Tempted by High returns:
During treks, it is often advised not to take short-cuts in the hope of reaching the summit earlier than others. What looks quicker and more rewarding can be risky and unforgiving. Sticking to the trusted route through discipline is the safest way to reach your destination.
Many families start SIPs lured by high returns promised by influencer hype, without understanding the risks.
When markets fell 11-13% in 2025 these volatile funds dropped, causing panic leading many to withdraw. Without emergency funds or clear goals, people were forced to redeem investments to manage EMIs and rising expenses amid 5-6% inflation
Asset allocation:
Many investors have little knowledge about asset allocation. Asset allocation distributes the SIP amount across equity, debt, gold, and hybrids, reducing risk and stopping investors from chasing hype driven high returns.
In volatile years a 70:30 equity-debt mix falls much less. Because losses are controlled, SIPs continue through downturns and rupee- cost averaging actually works. Overtime, regular rebalancing quietly boosts returns, helping disciplined investors build much larger long-term wealth without reacting to finfluencer trends.
Avoiding Risks:
After witnessing sharp market falls, many investors hesitate when it comes to taking risks. Given the limited disposable income and lack of diversity in their portfolio, the fear is natural since reckless risk-taking can amplify losses. However, avoiding risks entirely keeps them stuck, not allowing them to reach their potential.
Consult a professional:
Investing in SIPs without a guide who understands your goals, your capability and requirements can be your north star in the game of investing. These guides are registered investment advisers who are available to guide you through all your investments during both, chaos and opportunities. And this north star is now visible to all!
We are planning to bridge the gap between investors and investment advisers by making goal-based investments and professional guidance accessible at every step. For more information, reach out to us!
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