Mumbai: Union Mutual Fund has upgraded its outlook on Indian equity markets to the “Attractive Zone” in its latest quarterly State of the Market report, marking a notable shift from the Fair and Moderately Expensive zones that dominated the firm’s valuation spectrum throughout 2024.
This optimistic reassessment comes on the back of robust macroeconomic fundamentals, a positive earnings environment, and a more favourable tax regime for individual investors.
Commenting on the development, Harshad Patwardhan, Chief Investment Officer, Union Asset Management Company Private Limited (Union AMC), said, “While short-term challenges such as global geopolitical tensions and trade-related uncertainties persist, India’s long-term macroeconomic fundamentals remain strong. Healthy corporate and banking sector balance sheets, prospects of a demand revival fueled by tax relief and expanded welfare schemes, and the potential onset of a new private capex cycle are key positives driving for our outlook.”
To build on this positive momentum, Union Mutual Fund has launched a new Systematic Investment Plan (SIP) campaign titled ‘Badhna Hai Toh Lagey Raho, SIP Karo’, aimed at encouraging retail investors to remain disciplined and invest consistently over the long term.
Madhu Nair, Chief Executive Officer at Union AMC, added, “It’s human nature to overestimate short-term impact and underestimate long-term potential. We believe in the long-term promise of the Indian economy and equity markets over the next 10 to 15 years. This could be an opportunity to create intergenerational wealth — but only for those who remain disciplined and committed to their financial journey. In a noisy market environment, we urge investors to stay focused on their goals. That’s the inspiration behind our new SIP campaign: ‘Badhna Hai Toh Lagey Raho, SIP Karo’ — a call to stay the course and invest consistently for a longer period.”
The campaign comes at a time when India’s new income tax regime—effective April 1, 2025—exempts individuals earning up to ₹12 lakh annually from paying income tax. This boost in disposable income, as outlined in the Union Budget 2025, provides an added incentive for households to consider long-term investments through SIPs.
Union Mutual Fund believes this conducive environment—marked by fair valuations, improving investor sentiment, and supportive policy measures—could significantly boost retail participation in mutual funds. The fund house estimates that monthly SIP inflows across the mutual fund industry may rise to ₹40,000 crore over the next 18 to 24 months.
