New Delhi, May 9 (AHN) A growing share of systematic investment plan (SIP) inflows is now coming from smaller towns and rural areas, reflecting the rapid expansion of India’s retail investor base beyond major cities, HDFC AMC Managing Director and CEO Navneet Munot said on Saturday.

Speaking to AHN, Munot said the 'democratisation' of India’s capital markets is accelerating, with participation rising across age groups and geographies.

"It is encouraging to see thousands of people showing interest in mutual funds, capital markets and the Indian economy. Investors increasingly want to understand how they can benefit from India’s long-term growth story and create wealth through disciplined investing," he said.

According to him, investing is no longer restricted to metro cities, as people from diverse backgrounds and regions are now entering the financial markets.

The HDFC AMC chief highlighted that a significant portion of new SIP registrations is now coming from B-30 locations or cities beyond the top 30 urban centres.

"While large cities still account for a higher share in terms of investment amount, the number of SIP accounts from smaller towns and villages is growing rapidly," he said, adding that the trend reflects rising financial awareness and a strengthening investment culture across the country.

Munot also pointed to the growing enthusiasm among young investors, especially those in the 20-30 age group, who remain optimistic about India’s economic prospects and are increasingly focusing on long-term wealth creation.

He said India continues to offer strong long-term opportunities driven by factors such as a young population, rising domestic demand, digitalisation and the aspirations of 1.4 billion people.

Commenting on global uncertainties, Munot said volatility in markets and geopolitical developments are a normal part of economic cycles and should not distract long-term investors.

"India has continued to deliver strong economic and market performance over the past three decades despite several global disruptions," he noted.

Munot said HDFC’s mutual fund business has witnessed multiple market cycles over the last 30-35 years and the experience shows that disciplined and regular investing has historically generated healthy long-term returns for investors.

Moreover, he advised investors to continue investing consistently and remain focused on long-term financial goals to benefit from India’s growth journey.