In the last financial year, 41 million new demat accounts were opened by domestic brokerages. Total mutual fund folios touched 23.45 crore, and retail MF folios stood at 18.58 crore. Around ₹26,000 crore comes into mutual funds through systematic investment plans (SIPs) alone every month. The past few months, however, have not been rosy, with markets entering a correction phase. Equity mutual fund flows declined for three consecutive months, as investors — uncertain how the tariffs imposed by US President Donald Trump will pan out and how they will impact the economy and capital markets — turned cautious.

Vaibhav Porwal, Co-founder of the wealth management platform Dezerv, says portfolio rebalancing is a critical aspect of investing, and it becomes a particularly necessary strategy in times like the one we are in now. “Rebalancing allows investors to take advantage of current market conditions, where certain segments are available at discounted valuations. But more importantly, it helps reposition the portfolio to align with future potential, rather than past performance. In a market like this, capital appreciation will not be broad-based. There will be selective opportunities — certain sectors, certain asset classes — that will drive returns. And identifying and tilting toward those pockets requires thoughtful rebalancing.”