Mutual fund inflows into the equity markets fell in June, which implies that investors are stopping investments.
Equities are long-term instruments. You should invest in them with a horizon of at least five-seven years. Especially if you are investing via the SIP route, you should not stop your investments
when the markets fall.
Your SIPs get to buy more units when the markets fall and this helps to boost their returns over the long term. So, do continue investing for your long-term goals despite the current bout of market volatility. However, if you have become overweight on mid- and small-cap funds, sell and shift a part of your money to large-cap funds.
Even though India's macro-economic picture is worsening due to trade wars and high oil prices, Indian stocks could still do at least moderately well because earnings are expected to recover over the next couple of years. Moreover, since India is not a big exporter, it will be hurt less by the trade wars.