Small & midcap funds: Should you stay invested or pause your SIPs?
mutual funds and many investors wondering whether to continue their systematic investment plans (SIPs) or take a pause, an expert recommends that instead of complete withdrawals or panic-ridden halts, disciplined asset allocation plus periodic adjustments to cope with volatility and remain focused on financial goals would be to stay afloat.
“SIPs are not for short-term investors; they should not have invested in these funds just recently and on the high returns without concerning themselves with risk. An average self-directed investor tends to chase past performance, oblivious to any sense of value or personal risk appetite. These funds have surged ahead in value over the past couple of years,” commented Rajesh Minocha, a Certified Financial Planner (CFP) and founder of Financial Radiance.
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View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-118163304»>“An unrealistic assumption to expect short-term returns, hence, more should go towards large-cap and diversified funds instead. That said, during a 15-20 year time frame, some amount of SIP can continue in these small- and mid-cap funds. Instead of complete withdrawals or panic-ridden halts, disciplined asset allocation plus periodic adjustments to cope with volatility and remain focused on financial goals would be to stay afloat,” he further recommended.
The return chart of the last five years shows that all 21 schemes have
