Margins May Shrink in Some Areas as Number of AMCs Grows

Even if markets go through a correction, the overall trend of using systematic investment plans (SIPs) is likely to continue, says Feroze Azeez, joint chief executive officer (CEO) at Anand Rathi Wealth, in an email interview with Devanshu Singla. Edited excerpts:

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What are the potential risks for the markets, and have they already priced them in?

Risks may already be partially priced in. Investors have known about the (tariff) deadline for months, and many expect a limited or interim trade deal to avoid major disruptions. The recent strength in Indian equities reflects confidence in strong domestic growth and macro stability, which helps cushion external shocks.

Still, if talks break down and tariffs are re-imposed without a resolution plan, markets could react negatively. Export-heavy sectors may see short-term correction. Long-term investors, however, should not panic as India's broader fundamentals remain strong. Any market dip could be seen as an opportunity to buy.

What's the road ahead for flows to emerging and developed markets? How are the other central banks likely to respond to the US Federal Reserve's (Fed's) moves?