Despite equity markets trading near all-time highs, India’s mutual fund industry continues to show structural strength backed by robust retail participation and steady SIP inflows. However, investors should tread carefully amid elevated valuations and global uncertainties, said Juzer Gabajiwala, Director at Ventura Securities.

“Stock prices, especially in mid- and small-cap funds, have run up sharply over the past year. If company earnings do not grow as expected, markets could see short-term corrections,” Gabajiwala cautioned, adding that liquidity risk remains a key factor to watch as d omestic flows continue to underpin market stability.

He noted that the market’s current resilience is largely supported by strong SIP inflows from retail investors, with monthly investments staying

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