NewsICICI Prudential AMC's Haria Expects SIPs and Passive Funds to Dominate 2026 Investment LandscapeICICI Prudential AMC's Haria Expects SIPs and Passive Funds to Dominate 2026 Investment Landscape
ICICI Prudential AMC's Chintan Haria expects SIPs and passive funds to remain popular in 2026 amid market volatility. He clarifies that SIP stoppages often result from routine changes rather than negative sentiment, while passive instruments serve as behavioral stabilizers. Broader indices like Nifty 500 and factor-based products are anticipated to gain traction.
*this image is generated using AI for illustrative purposes only.
Systematic investment plans (SIPs) and diversified mutual funds are expected to remain in focus throughout 2026 as investors navigate sustained market volatility, according to Chintan Haria, Principal – Investment Strategy at ICICI Prudential AMC. His outlook emphasizes the continued appeal of process-driven investing strategies that offer built-in diversification and professional management.
SIPs and Mutual Funds Provide Stability Amid Volatility
Haria believes that periods of market swings highlight the benefits of systematic investing approaches. Mutual funds offer built-in diversification and professional management, while SIPs allow consistent participation without the need to time market entries or exits. This approach contrasts with trading strategies that depend heavily on timing, whereas long-term, diversified investing aligns better with goal-based wealth creation.
The investment strategy expert notes that process-driven investing becomes particularly valuable during uncertain market conditions, providing investors with a structured approach to wealth building.
Understanding SIP Stoppages in Market Context
Addressing concerns about SIP discontinuations, Haria clarifies that pauses in SIP contributions often rise during volatile periods but frequently stem from routine or temporary reasons. These include:
- Changing bank mandates
- Platform switches
- Merging multiple SIPs
- Adjusting investment sizes
- Cashflow requirements including EMIs and tax obligations
- Job changes
"Stopping a SIP does not necessarily mean investors are withdrawing funds. Net SIP flows and the duration of continued investments give a clearer picture," Haria explained. This perspective suggests that temporary SIP halts should not be interpreted as negative market sentiment.
Passive Instruments as Behavioral Stabilizers
Index funds and ETFs serve as behavioral stabilizers rather than substitutes for equity trading, according to Haria. These instruments provide low-cost, transparent, and rule-based exposure without the complexity of stock selection or timing decisions. Precious metal ETFs offer additional diversification and psychological comfort during periods of equity drawdowns or inflation concerns.
The allocation strategy depends on investor risk profiles:
| Investor Type | Strategy |
|---|---|
| Aggressive investors | Higher direct equity exposure with index funds as core holdings |
| Conservative investors | Greater reliance on index and precious metal ETFs for risk control |
Expected Product Focus Areas for 2026
Haria anticipates several categories of investment products will gain attention in 2026. Broader indices such as the Nifty 500, offering wider representation across market segments, and the Nifty Next 50, blending stability with growth potential, are expected to draw increased focus.
Factor-based indices focusing on low-volatility, quality, and momentum strategies are likely to see wider adoption as investors seek smoother equity participation and rules-based exposure. Gold and silver ETFs will continue acting as structural diversifiers rather than primary return drivers, providing balance in increasingly market-linked portfolios.
"The question is not whether to invest in these instruments, but how much. Their value lies in helping investors make consistent, reliable decisions over time, especially amid market volatility," Haria concluded. This approach emphasizes the importance of appropriate allocation rather than complete avoidance of passive investment strategies.
20
