In March 2026, Indian investors demonstrated resilience during a market correction, with equity mutual fund inflows rising from ₹26,000 crore to nearly ₹40,000 crore, marking a 50% increase. This trend reflects a shift in investor behavior, as they adopt more sophisticated strategies compared to previous years. Sandipan Roy, Chief Investment Officer at Motilal Oswal Private Wealth, noted that asset allocation has become a common practice, with multi-asset allocation funds surpassing ₹2 lakh crore in assets under management (AUM). Additionally, investments in gold ETFs have seen sustained inflows for 11 consecutive months, and international funds have grown significantly, indicating a broader diversification approach among investors.

Roy suggests a balanced investment strategy comprising 30% in largecaps, 30% in mid and smallcaps, 20% in international funds, and 20% split between gold and multi-asset funds. He emphasizes the importance of moderation in investment decisions, advising investors to scale up during pessimistic sentiments and pare back during optimistic periods. Furthermore, alternative investments are becoming central to high-net-worth individual (HNI) portfolios, with significant growth in private equity and credit vehicles. Roy identifies defence and capital markets as key sectors for long-term investment, driven by geopolitical uncertainties and the increasing financialization of Indian households.