1 month ago
Shankar Sharma questions India's equity investing boom
Shankar Sharma, a well-known investor, has raised concerns about India's growing popularity of Systematic Investment Plans (SIPs) and the belief that investing heavily in equities is a safe way to build wealth.
He argues that equities are risky and that many Indian households cannot afford to take on so much risk.
Sharma also points out that the increase in SIP investments is helping foreign investors sell their shares, which might not be good for India's economy.
While many financial experts support SIPs as a good way to invest, Sharma's views have started a debate about how much money people should invest in equities.
Shankar Sharma criticizes India's SIP culture for encouraging excessive equity investment.
He argues that equities should only make up 5-10% of an individual's disposable net worth.
Sharma believes SIP inflows are facilitating foreign institutional investors' exits.
He warns that equities are volatile and marketing campaigns downplay this risk.
The debate continues between pro-SIP views and Sharma's cautious approach to equity investment.
- Who
- Shankar Sharma, founder of GQuant Investech
- What
- Criticism of India's SIP culture and equity investing boom
- Where
- India
- When
- July 2026
- Why
- Concerns about high equity risk and foreign investor exits
Pro-SIP View
Shankar Sharma's View
Equity Exposure
Pro-SIP View
Equities are ideal for long-term wealth creation and should form a significant part of household savings.
Shankar Sharma's View
Equities should account for no more than 5-10% of an individual's disposable net worth due to high risk.
Risk Perception
Pro-SIP View
SIPs are a low-risk path to wealth creation with predictable long-term returns.
Shankar Sharma's View
Equities are highly volatile and marketing campaigns downplay this risk.
Foreign Investor Exits
Pro-SIP View
SIP inflows support market stability by absorbing selling pressure from foreign investors.
Shankar Sharma's View
SIP inflows facilitate foreign institutional investors' exits, transferring wealth from Indian households.
Key facts
- SIP Inflows
- Expected to reach ₹100,000 crore per month by December
- Equity Returns
- Average annual returns of around 14% over long periods
- Recommended Equity Exposure
- 5-10% of disposable net worth
- Social Security in India
- Weaker compared to developed economies
- Household Financial Buffers
- Limited in India
Quotes
Shankar Sharma
Founder of GQuant Investech and veteran investor
“"My concern is not with SIPs as an investment mechanism but with encouraging the average Indian household to invest heavily in equities."”
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