INSUBCONTINENT EXCLUSIVE:
Investors, who put money in equity mutual funds through systematic investment plans (SIPs) in the past one year, are sitting on losses
because of the extended weakness in the stock market
Investors are losing money in 123 out of 147 actively managed equity schemes, as per data from Value Research
Small-cap funds have seen the highest fall followed followed by midcap funds and multicap funds.
In SIPs, investors put a fixed amount in
schemes every month or quarter
In the last two years, many first-time investors in equity mutual funds through SIPs.
When they began SIPs, the allocations were linked to
various goals such as vacations, retirement etc
The start, however, has been wobbly For example, an SIP of Rs 1,000 done in Sundaram Small Cap Fund for the last one year entailed a total
investment of Rs 12,000 which is down to Rs 9,726 as on September 25, a loss of Rs 2,374
But their track record in a two year period is better
At least 22 out of 141 equity mutual funds have given negative SIP returns in the last two years.
Financial planners believe SIPs in equity
mutual funds should done with a time frame of minimum of 5 years
with their SIPs and not get affected by negative returns in the near term
A dip in the market is the best time for an SIP investor as he accumulates more units every month and subsequently this helps to make higher
He points out to the period from 2008-2010, when investors made negative returns for 3 long years
However those who stayed invested and continued with their SIPs eventually made good returns.
Association of mutual funds of India (AMFI)
data show that the mutual fund industry had added about 10.07 lakh SIP accounts each month on an average during 2018-19, with an average SIP
size of about ?3,200 per SIP account.
Mutual funds have raised Rs 43,921 crore through SIPs in 2016-17 which rose to Rs 67,190 crore in
In the first five months of the current fiscal, they raised Rs 36,760 crore.
Wealth Eroders The bottom five Scheme name Category 1-year
(%)Sundaram Small Cap Smallcap-34.10HSBC Small Cap Smallcap -28.39ICICI Prudential Smallcap Smallcap-26.63Aditya Birla Sun Life Small Cap
Smallcap -24.74Aditya Birla SUn Life Pure Value Value-oriented -23.73The top five performers ICICI Prudential Focused Equity Focused
13.48%Parag Parikh Long Term Equity Multicap 8.81%ICICI Prudential Value Discovery Value-oriented 6.91%ICICI Prudential Multicap
Multicap6.34%Axis Bluechip Largecap 6.06%*As on September 25, Note: returns are annulaised
