Bye Bye 2025

 Dear Investors,

As we bid farewell to 2025 and welcome 2026, I would like to extend my sincere gratitude for your continued trust and support.

The year 2025 was marked by mixed performance across market indices amid high volatility driven by both domestic and global factors. Unexpected tariffs imposed by the USA on India, coupled with continuous FII outflows, created pressure on the markets. However, strong domestic inflows, particularly on market dips, provided the necessary resilience. Despite these challenges, Nifty50 delivered +10.5%, the Midcap Index +5.5%, Smallcap Index -5%, and Microcap Index -10%. This highlights that many retail investors either shifted focus to alternative assets like gold and silver or paused equity investments, while mutual fund inflows continued, with preference for large- and mid-cap segments over small- and micro-caps. In this context, safe-haven assets like gold and silver delivered exceptional returns of 75% and 150%, respectively.

As we step into 2026, the market appears to be at a potential inflection point. Small- and micro-cap indices, IT, Pharma, FMCG, and Realty have underperformed over the past 14–15 months, while Banking and Auto have outperformed. A closer look at 2025 indicates that most indices underperformed in H2, except Auto, which gained significantly following GST reductions.

Given this backdrop, i believe that 2026 presents an opportunity for market recovery. While the timing of a significant push—H1 or H2—remains uncertain, investors following disciplined SIPs, including SMART investments, should continue their regular contributions. Lumpsum investors who had reduced or paused allocations may consider gradually increasing exposure at this juncture to capitalize on potential upside. Key triggers could include renewed FII inflows, moderation of outflows, or corrections in gold and silver that may redirect short-term capital back into equities.

I anticipate an interesting year ahead and encourage investors to remain patient and stay invested for the long term. 

Wishing you and your families a happy, healthy, and prosperous New Year 2026.