Indian Investors‍ Embrace Long-Term Investing, Groww CEO Says

‍⁣ Updated June 10, 2025
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Indian investors are demonstrating increased sophistication by accepting market volatility and ‍progressively adopting long-term, goal-oriented investing strategies, according to Varun Gupta, CEO of Groww‌ Asset Management.

gupta highlighted the sustained strength of⁣ SIP flows‌ despite global economic uncertainties,⁢ suggesting a fundamental change in how Indian retail investors approach the market. He noted that investors increasingly view equity investments as a means for long-term wealth creation, with volatility seen as a normal market characteristic.

The popularity of passive investing is also on the​ rise, Gupta said, as ⁣investors ⁤recognize the value of low-cost, diversified exposure to both‌ broad markets and specific​ sectors.He added that smart beta and sectoral ETFs ‍are gradually finding their place in retail portfolios,‍ evidenced by the growing interest in Groww’s smart beta new ⁤fund offerings.

Gupta emphasized the importance of‌ product innovation in⁣ the competitive passive investment landscape. Groww focuses on identifying emerging‌ themes and market gaps⁤ to develop structured investment tools. The company aims to provide a ‍range of​ solutions that cater to investors with‌ varying‌ levels of‌ experience.

While acknowledging the tactical appeal⁢ of the defence sector, gupta believes it represents a long-term structural opportunity. He cited strong⁣ government support, improved⁢ financials of domestic players, and⁣ advancements in indigenous technology as key drivers​ for sustained growth.

Regarding thematic investing, gupta cautioned against concentrated exposure driven by short-term trends. Groww prioritizes launching thematic‌ funds aligned ​with strong,long-term structural drivers rather ‍than fleeting market momentum. He also stressed the crucial role of financial advisors in helping‌ investors navigate thematic options and maintain balanced portfolios.

Gupta noted that geopolitical tensions have increased global ⁢uncertainty,but ⁢India’s strong structural drivers and resilience position‍ it favorably.Groww’s portfolios focus on domestic themes less exposed to external shocks, with a constructive outlook on sectors benefiting from India’s growth story.

In managing active portfolios, Groww employs a disciplined QGaRP (Quality, Growth at a Reasonable Price) philosophy to balance⁣ risk and return.​ This approach emphasizes valuation, ensuring that the company does not overpay‌ for even the most promising opportunities.

Gupta⁤ anticipates continued evolution in the mutual⁣ fund industry, ⁢driven by increased retail⁣ awareness and the entry of new players. He views this⁤ growing participation as a⁤ positive⁤ sign of market maturity,creating opportunities for better products,innovation,and improved investor outcomes.While fee compression is a factor, it encourages efficiency and value-driven approaches that ultimately benefit investors.

Gupta believes financial ‍advisors will play an increasingly vital role in helping ‍investors navigate the ⁢complex investment ⁢landscape and make informed, goal-based ​decisions.

What’s next

Groww Asset Management plans to continue innovating and expanding its product offerings to meet the evolving needs of Indian investors,with a focus on long-term growth and lasting investment ⁢strategies.