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

Even in a tough year, the Nifty has delivered 7–8% returns, Systematic Investment Plan flows remain 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 more 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:Abakkus was founded in 2018 as my first entrepreneurial venture, at a time when alternates were just gaining traction. We believed India’s economic growth would translate into wealth creation, alongside rising awareness of professional wealth management.

Starting with an AIF (Alternative Investment Fund), we expanded into PMS (Portfolio Management Services) and offshore mandates, including the Ireland-domiciled Aryabhat India Fund, and last year launched a late-stage private equity (PE) fund.The idea has always been to offer products that suit investors and add value. A mutual fund was possible only after completing five years, which was one reason.

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.Many say the space is crowded, but in 2003, there were about 35 asset management companies; today, there are 50, which means only 15 have been added in 22 years. That is when the