Continuing the ongoing discussion on mid-cap and small-cap SIPs, Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, shared fresh data in a social media post on Tuesday, and wrote: “Since we are all trying to decipher whether to stop, start, time or play the dip, on something as simple as a SIP, some interesting data that may help.”
She further said, “I had shared our midcap fund has a minimum 10 year SIP return of 8 pc. Here is similar data for indices (not index funds because you have to reduce fees / tracking error). Again no negative returns in midcap (although the active fund had alpha), and virtually none in small cap.”
Radhika Gupta said, “Hope this helps cut out some of the noise. And for those who want to troll me for defending MFs and SIPs, I am doing my job, proudly and happily, and will continue to do so. Happy SIPping.”
It may be noted that in one of her social media posts on Monday, Radhika Gupta had said that SIPs were designed as a simple, long-term investment tool, and mid-cap and small-cap investments are beneficial if balanced properly. Stressing that market cycles can make returns look bad in the short term, she emphasized the importance of holding SIPs for at least 10 years.
She had also cited their mid-cap fund’s track record, showing no negative returns over a decade, and urged investors to ignore short-term fear mongering, focus on a good fund manager, and stay invested for the long run.
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