In its latest report titled “The Dabbawala Principle”, the fund house said investors should follow a system-based approach similar to Mumbai’s dabbawalas, who are known for high accuracy achieved through consistency rather than constant innovation.
The report emphasised that investment plans are typically designed to withstand volatile phases, not just periods of market gains.
The commentary comes amid recent market weakness.
As of March 13, the BSE Sensex has declined more than 10% year-to-date, while the Nifty IT Index has fallen over 23%, entering bear territory.
The report also highlighted continued foreign institutional investor outflows and elevated oil prices linked to geopolitical tensions in the Middle East, alongside inflation rising to 3.2% in February.
WhiteOak Capital MF said investors should avoid reacting emotionally to such corrections. It recommended continuing systematic investment plans (SIPs), reviewing asset allocation, and deploying surplus funds gradually based on risk tolerance.
The report framed equity investing as a long-term exercise, comparing it to a “Test match” rather than a short-format game, where patience and adherence to fundamentals are critical during volatile phases.
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It also pointed to behavioural trends among retail investors, noting that many tend to invest more after market rallies and reduce exposure during corrections. According to the report, this “behaviour gap” reduced investor returns by an average of 5.3% annually between 2003 and 2022.
To illustrate the impact, the report cited a scenario where two investors followed different approaches during a downturn. One paused investments amid falling markets, while the other continued. It said systematic investing works by accumulating more units at lower prices, and interruptions during declines can weaken this mechanism.
Despite recent volatility, the fund house noted that domestic flows have remained resilient. Monthly SIP inflows have stayed above ₹29,000 crore, close to record levels, suggesting that retail participation has held steady even as foreign investors reduced exposure.
The report added that macroeconomic fundamentals remain supportive, with India’s GDP growth projected at 7.5% for 2026 and inflation within the Reserve Bank of India’s target range.
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Citing past market cycles, including the 2008 financial crisis and the 2020 pandemic-driven selloff, WhiteOak Capital MF said equity markets have historically recovered from sharp declines over time.
While it acknowledged the possibility of further downside if global risks intensify, it maintained that a systematic approach helps investors navigate uncertainty without relying on market timing.
