Foreign money could turn to India if AI trade stalls: Sunil Singhania

Even in a tough year, the Nifty has delivered 7-8% returns.

- Dipti Sharma [e-mail]

Systematic Investment Plan flows are strong, and this phase has been more of a time correction than a price correction, said Sunil Singhania, founder of Abakkus Asset Manager.As economic recovery gains pace, he is optimistic about 2026 and 2027.

While some markets, such as South Korea, have posted 60-70% gains in 2025, these gains reflect a catch-up after years of flat returns and are driven by just a handful of tech and AI stocks, making them vulnerable if the AI trade cools. India, after a strong run between 2020 and 2024, is consolidating, with five-year returns still healthy, he said.

Edited excerpts:

From starting Abakkus Asset Manager and building it into a respected alpha-focused firm with over ₹40,000 crore in assets under management (AUM), you've now entered the mutual fund space. Why now, and why open the door to retail investors through a FlexiCap fund?

Abakkus was founded in 2018 as my first entrepreneurial venture, when alternates were just gaining traction. We believed India’s economic growth would translate into wealth creation, alongside rising awareness of professional wealth management. The idea has always been to offer products that suit investors and add value. A MF was possible only after completing five years.

Another is the regulator opening up space for slightly more non-plain-vanilla products, while from our perspective, the investor base is set to expand from 6 crore to 15-20 crore and MF AUM from under $1 trillion to $3-4-trillion.