Foreign institutional investors are unlikely to return to Indian equities anytime soon after nearly $2 billion of outflows in March, as escalating geopolitical tensions and rising crude prices continue to weigh on risk appetite, market experts said.

The renewed selling pressure from foreign investors has coincided with a sharp bout of volatility in domestic equities. The Nifty 50 has already fallen nearly 6% so far this year, while investors on Dalal Street have seen about Rs 19 lakh crore wiped out in market cap in just last five trading sessions amid rising global uncertainty.

The sell-off has been triggered largely by escalating tensions in the Middle East, particularly the conflict involving Iran and the United States, which has rattled global markets and pushed oil prices higher.

Foreign portfolio investors (FPIs) have been steady sellers in Indian equities in recent weeks. According to market data, FPIs sold nearly Rs 16,000 crore worth of equities in the first week of March, while the first four trading sessions of the month alone saw net outflows of around Rs 21,829 crore.

VK Vijayakumar, chief investment strategist at Geojit Investments, said the brief period of foreign buying seen earlier in the year has reversed sharply due to the geopolitical backdrop.

“The net FPI buying witnessed in February has reversed due to the Middle East conflict. Uncertainty surrounding the conflict, the steady decline in the market, the vulnerability of the Indian economy to a sharp crude spike and the depreciation of the rupee have contributed to sustained FII selling in the cash market,” Vijayakumar said.
He added that foreign investors are unlikely to return as buyers anytime soon until there is clarity on how the conflict evolves and crude prices cool. “FPIs are unlikely to return to the market as buyers until there is some clarity on the outcome of the conflict and a decline in crude prices. Brent crude trading above $90 is bad news for the Indian economy and markets,” he said.The rising oil prices are particularly worrying for India, which imports the majority of its crude requirements. A sustained spike in oil prices can widen the current account deficit, put pressure on the rupee and stoke inflation, all factors that tend to deter foreign investors.

Analysts say the current environment has led to a broader de-risking across emerging markets. Vinit Bolinjkar, head of research at Ventura Securities said the short-term outlook for equities remains cautious due to rupee volatility and the inflationary impact of higher crude prices.

He expects heightened volatility to continue in the near term, with investors likely to favour domestically insulated sectors.

“In this environment, sectors such as capital goods and consumer durables may outperform because they are less exposed to global macro risks, while globally linked sectors may face headwinds until uncertainty subsides,” he said.

Despite the persistent foreign selling, domestic institutional investors (DIIs) have helped stabilise the market.

The benchmark index has so far managed to defend the 24,300 support level, largely due to domestic buying absorbing foreign outflows. However, global risk sentiment remains fragile.

Justin Khoo, senior market analyst for Asia-Pacific at VT Markets, said rising geopolitical tensions are triggering a shift in global liquidity as investors move away from risk assets.

“Escalating tensions in the Middle East are prompting a noticeable shift in global liquidity, with investors rotating away from risk assets and increasing allocations to safe havens such as the US dollar and government bonds,” Khoo said.

Such shifts typically tighten liquidity in equities and other risk-sensitive markets as investors prioritise capital preservation.

For Indian markets, analysts say a sustained recovery in foreign flows will likely depend on two key factors: easing geopolitical tensions and a decline in crude prices. Until then, the market may continue to rely heavily on domestic liquidity to counter foreign outflows, even as volatility remains elevated in the near term.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

A not-so-quiet personal finance change is underway in India, and in no place is it more evident than in mutual fund investing.

More households have women at the centre of financial planning, and data support this transition, which is evidenced over the last five years. One in four mutual fund investors in the country is a woman investor.

The narrative is not just about increasing women’s participation in investing, but one about how women are approaching investing in their choice of asset classes and scheme categories.

If you are a woman making your own investment decisions, you are more likely to be thorough and diligent about the framework you use to invest. You would like to set down your investing goals, understand the market to map the investment options that are available to meet your goals and your risk appetite, and, where needed, not hesitate to approach a trusted advisor to guide you through your investment journey.

While this may appear complex and time-consuming, you would also like to participate in the markets even as you refine your investment choices.

That is where passive investing, that is, investing in index funds and ETFs, is a practical starting point.
Low cost, rules-based, makes passive investing a suitable vehicle, not just for building the core part of one’s investment portfolio, but also to participate in narrow themes like sector or theme-based investing. According to recent AMFI data, passive funds now manage close to ₹15 lakh crore in assets, with investor interest in this kind of low-cost, rules-based passive investing only growing month after month.

This growth is not confined to any one category, like say the Nifty 100 index. Investors are allocating to sector-specific indices, across commodity indices like Gold and Silver and to theme-based drivers of returns like value or quality.

From investing to financial planning – how the definition of empowerment has changed

India’s digital public infrastructure, the unique digital identifier to the Unified Payments Interface, combined with the emergence of various fintech platforms, has empowered women to make investment decisions.

But access alone is not a marker of the empowered woman investor in India today. Empowerment is demonstrated in her ability to allocate money in a manner that best meets her financial goals. Those goals could span the spectrum from funding a much dreamt-about holiday, buying that new EV, putting away money to fund that postgraduate course, children’s education, or health and retirement security. The objective is to provide cash flows for living her dreams and funding life stages.

In passive funds, across various index funds and ETFs, a woman would find this avenue attractive because it is rules‑based in portfolio construction and low‑cost in portfolio access.

Passive Strategies for Women Investors

A broad-based equity index fund or ETF, tracking the Nifty 100 Index or the Nifty 50 index (investing in the bluechip, largecap stocks), can serve as a foundational layer for participating in the economic growth story of India. This can form a stable core aligned with long-term financial goals.

Factor-based passive strategies, that is, investment in indices or benchmarks that focus on a specific return driver of stocks, may be worth considering for pursuing preferred styles of investing. These Indices are built around characteristics such as value, quality, low volatility or momentum. For example, if you think the Indian markets are overvalued, you may choose your preference to value by investing in a scheme tracking the Nifty 500 Value 50 Index. If you would like to participate in the popular trends that are underway, you could choose the Nifty 500 Momentum 50 index. The factor-based strategies help you add your own style preference when you build your investment portfolio.

Gold and silver have the same place in our hearts as they did for the generations of women before us. In your investment portfolio, you can find a place through gold or silver ETFs or a fund of funds. Invested in the right proportion, they serve as an effective hedge to the volatility that equity as an asset class can bring to your portfolio in uncertain times.

There are index funds with only fixed-income instruments like bonds as the underlying. Some of these indices have a predefined maturity date, akin to the maturity date of a bank fixed deposit that you may be familiar with. These funds help us meet our near term financial goals, where one can choose funds which have a maturity period matching our investment horizon to meet our near term goals.

Finally, systematic allocation into passive funds, via the SIP route, drives home discipline, rupee cost averaging and consistency in the investment journey are advantages for any investor. Regular investments through SIPs into index funds or ETFs allow investors to build exposure gradually, reducing the noise around timing and encashing of investments in response to everyday news flow.

Conclusion

Women in India are already controlling more wealth, investing in more equity, and owning a larger share per folio of mutual fund investment than ever in the past. The change is visible not just in published data but in sharper allocation choices, greater cost awareness and a clearer focus on long-term resilience. Investing by women is more deliberate and structured.

Index funds offer women investors a simple way to translate those unique strengths into intelligent investment choices. They provide a foundation that can adapt as goals evolve and responsibilities expand. As more women shape their financial futures with clarity and discipline, the investment choices that women make become a reflection of independence.

(The author is Vandana Trivedi, Head – Institutional Sales & Passives Axis AMC)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times.)

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A disappointing report on the U.S. labor market, a spike in oil prices and the specter of a protracted Middle East war converged at the end of a turbulent week, fueling fears of a stagflationary spiral that threatens to derail the U.S. economy. 

The U.S. lost 92,000 jobs in February, well below January’s gain of 126,000 and far worse than the 50,000 jobs expected by economists. The unemployment rate ticked higher, to 4.4%.

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Over a period of time, women in India have increasingly taken charge of their financial futures. From opening demat accounts, investing in mutual funds, FDs, crypto, and planning for retirement, women are becoming active participants in the country’s investment landscape. Yet many still face challenges when it comes to building the right investment portfolio, staying disciplined during market ups and downs, and planning for long-term goals such as retirement or financial independence.

Mutual funds have emerged as one of the most accessible investment tools for women because they offer diversification, professional management, and flexibility through options such as systematic investment plans (SIPs) and lump-sum investments. However, the key to success lies not just in investing, but in building the right portfolio at the right stage of life.

On the occasion of Women’s Day 2026, ETMutualFunds reached out to women financial experts to understand how women investors can build a strong mutual fund portfolio, stay disciplined during volatile markets, and avoid common investment mistakes.

Building right mutual fund portfolio at different life stages

A woman’s financial priorities often evolve with life stages — starting with early career savings, moving to family responsibilities, and eventually focusing on retirement planning. In the early stages of a career, women typically have a longer investment horizon and fewer financial obligations. Then the responsibilities grow in the mid-career stage — such as buying a home, raising children, or planning for education expenses. Closer to retirement, the focus gradually shifts toward preserving capital and generating stable income.

Ennette Fernandes, Fund Manager- Equities, Canara Robeco Asset Management shared with ETMutualFunds that a certain mix of different asset classes may be considered as it helps in maintaining balance between long term investment plans and contingency requirements. However, the investors should assess their risk appetite, investment objective and goal before investing.

Priti Rathi Gupta, Founder of LXME shared with ETMutualFunds that investing is not complex, just apply the simple thumb rule to guide your mutual fund investment which is the equity portion should be 100 – age.
Gupta said that if you are in your 20s or early 30s, time is the greatest asset you possess, so it is wise to invest 70-80% in equities and the remainder in debt. As you grow into your 30s to 40s, more responsibility is added to your plate. So, it is wise to invest 60-70% in equities and 30-40% in debt.Finally, when you reach your 50s or beyond, the priority is to secure the capital. So, it is wise to invest 30-40% in equities and 60-70% in debt and in every decade of your life, it is wise to maintain a liquid fund that will suffice for at least 8 months’ expenses to act as a safety net in the face of adversity. SIPs are your best friends in every decade of your life, as they eliminate the need to time the market, are the most disciplined way to invest, and let the power of compounding work its magic, Gupta said.

Staying disciplined during market volatility

Market volatility is inevitable, but disciplined investing can help investors stay on track with their financial goals. SIPs encourage regular investing regardless of market conditions. By investing a fixed amount at regular intervals, investors benefit from rupee cost averaging — buying more units when prices are low and fewer when prices are high. This helps reduce the impact of short-term market volatility

Gupta said that the best way to tackle the ups and downs of the markets is also the simplest one: don’t stop your SIPs! Market fluctuations, or rather the fall in the markets, are the best times to invest if you’re effectively accumulating more assets at lower prices.

She further said that before you start investing, make sure you set a goal for yourself so that temporary market fluctuations don’t affect your mindset. While it is essential to keep a tab on them, over-tracking your investments is also likely to lead to panic, especially during uncertain times so the key is to be patient and follow the practice of periodic portfolio reviews and rebalancing. If you’re still unsure, just think of the reason why you wanted to start investing in the first place! Lastly, consult a trusted advisor before making any impulsive decisions.

To this, Fernandes said investors usually lose sight of the fact that investing is for the long term during such periods of market volatility. However, staying disciplined is essential during such times.

Planning investments for long-term goals

For many women, financial goals include retirement planning, building a safety net, supporting family needs, and achieving financial independence. Retirement planning is particularly important because women often have longer life expectancies and may take career breaks due to family responsibilities. This makes long-term financial planning even more crucial.

Fernandes said it is imperative that a Systematic Investment Plan (SIP) goal post is established for such long-term goals and followed in a disciplined manner.

Gupta said that the earlier you start investing, the more time the power of compounding has to work its magic, and even small investments today have the potential to accumulate a huge amount for you in the future so invest wisely and diversify your investments to achieve the right mix of safety and growth.

This is where smart investment strategies come into play, helping you achieve your plans despite the erratic nature of the markets, consistency is the key; hence, SIPs should be treated as commitments, and focus should be given to long-term objectives like retirement and financial freedom and with discipline, smart investment strategies, and patience, the power of compounding will multiply your early investments, resulting in safety and growth, Gupta further said.

Common investment mistakes women should avoid

While more women are entering the investment ecosystem, experts say certain common mistakes can hinder long-term wealth creation.

Gupta said that the first challenge is waiting for the ‘right time’ to start investing and delaying the decision, which ultimately reduces the power of compounding. Secondly, many investors have the tendency to either overdiversify or overconcentrate in a single asset, often losing control of their own financial decisions. Third, ignoring insurance, inadequate health and life cover can derail an otherwise solid investment plan.

She further said that fourth, investing without a goal; money without direction tends to get withdrawn at the first sign of trouble. Finally, neglecting periodic portfolio review and rebalancing can quietly increase risk and move your investment away from your desired goals. Staying invested is important, but staying aware is equally critical.

Fernandes said one should avoid focusing only on returns, as that invariably comes at high risk. Balancing risk and return in investing is the key.

One should always consider their risk appetite, investment horizon and goals before making any investment decision.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and twitter handle