The debate around Systematic Investment Plans (SIPs) has intensified in recent weeks, with several market veterans offering contrasting views on whether investors should continue investing through or adopt a more tactical approach. After veteran fund manager Samir Arora defended SIP investing and questioned the effectiveness of market timing, ace investor Shankar Sharma has now joined the conversation with a different perspective.
In a post on X, argued that the easiest way to resolve the ongoing debate is for everyone commenting on SIPs to first disclose their own interests. According to him, understanding the motivations of those participating in the discussion would help investors better judge the credibility of their arguments.
“The simplest way to settle the Pro/ Against SIP debate is to ask all commenting parties, to disclose their Swarth ( self interest). Doodh ka doodh clear ho jayega.”
Sharma then went on to disclose what he described as his own position. He said he has no commercial interest in whether SIPs generate returns for investors, adding that investment outcomes are a matter between investors and the professionals managing their money.
“I disclose mine: I have no concern whether SIPs make money for investors or not. It’s not my business. It’s between Investors and their wealth guardians.”
However, Sharma clarified that his concern lies elsewhere. As an investor, he said he looks at the broader macroeconomic implications of sustained SIP inflows. According to him, SIP-driven flows provide exit liquidity to foreign institutional investors (FIIs), which, in turn, can weaken the Indian rupee and affect returns for overseas investors. He also argued that the resulting currency weakness could have wider economic consequences, including higher inflation and broader financial stress.
He further revealed that he would no longer publicly criticise SIPs because of his long-standing personal and professional association with Samir Arora. Sharma recalled that Arora was among the earliest supporters of his institutional brokerage business during the mid-1990s and said he would not go against someone who had backed him at an important stage of his career.
“Lastly, since @Iamsamirarora was an early ann-daata in my Institutional brokerage Business ( probably ’95-96) , I shall, hereafter, never say a word publicly against SIPs. I can’t do namak haraami. Isliye, aaj sey, apun BULLISH SIPs!!”
The comments come at a time when the merits of SIP investing are being widely debated in market circles. Supporters argue that SIPs encourage disciplined investing, help average out market volatility and reduce the need to time the market. Critics, on the other hand, believe investors should be mindful of valuations and consider moderating investments when markets appear overheated.
Sharma’s remarks stand out because they shift the discussion away from whether SIPs are inherently good or bad and instead focus on the incentives of those making the arguments. By openly stating what he sees as his own interest in the debate, he has called on others to be equally transparent about the perspectives from which they are commenting.
Who is Shankar Sharma?
Shankar Sharma is a veteran investor and market strategist, and the co-founder of First Global and GQuant. He is widely known for his contrarian investment style and has been an active participant in Indian and global equity markets for several decades. Shankar Sharma publicly holds 4 stocks with a net worth of over Rs. 103.2 crore: Thomas Scott, Valiant Comms, ACE Software Exports, and Sumit Woods.
Sharma has built a reputation for taking independent macroeconomic calls and frequently shares his views on markets, investing, monetary policy and the global economy through interviews and social media. Over the years, he has remained one of India’s most closely followed market voices, with investors tracking his opinions on equities, currencies and broader economic trends.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.