Mutual Fund SIP Investment: A sharp rise in SIP flows was seen in the month of March when the markets reacted negatively to the Middle East war, said Franklin Templeton.

According to Franklin Templeton, March saw an increased flow versus February. This shows the investor confidence and changing behaviour during market corrections.

Mutual Fund SIP Investment

Franklin Templeton said that it is taking advantage of the dip in share prices to buy stocks, rather than preferring to hold cash.

Avinash Satwalekar, president, Franklin Templeton Asset Management India, said that SIP flows for the industry are set to decline further in March from February's Rs 29,845 crore because this has been the historical experience where any concern leads to a relook into SIPs.

However, Avinash Satwalekar said that SIP flows have increased for Franklin Templeton Asset Management India's schemes.

"If we find names that we like that are getting cheaper, we will put more capital to work," he said.

Mutual Fund SIP Investment: Historical Trend 

Avinash Satwalekar said that over the last three decades, every crisis has resulted in a correction followed by a sharp recovery, which yields handsome results for investors who enter at low levels.

Mutual Fund SIP Investment: Markets Valuation 

Avinash said that stock market correction has brought down large cap stocks' valuations, making them more interesting for buyers. 

Mutual funds feel that earnings growth over the next three years will again push valuations higher in such stocks once the conflict is over.

Also, largecap companies are better placed to handle the Middle East war's impact compared to others, making them a better investment option.