Q&A | Tarun Birani – CNBC says TV18

In a recent interview by CNBC-TV18 MF CornerTarun Birani, founder and CEO of TBNG Capital Advisors, addressed general concerns around the systematic investment scheme (SIP) investments especially during the market fall. He provided valuable insights on how investors should explain negative SIP returns, long -term benefits of investing, and how to reduce the SIP minimum amount on retail participation. Here, there is a quick look at their major takeaairs for investors navigating these challenging times.

Question: Investors often get nervous when they see negative SIP returns. How should they explain such stages?

A: Negative SIP returns should not be seen as a reflection of poor investment decisions. A short -term decline is often operated by the global or local market trigger. The SIP is designed to take advantage of the rupee-negative average, which helps investors to deposit more units when the markets are under the markets. Volatility is an inherent feature of equity investment and should be seen as an opportunity rather than a limit.

Question: Does the negative SIP indicate a bad fund option, or is it just market volatility?

A: Short-term negative SIP returns are usually the result of comprehensive market fluctuations rather than indications of a poor performing fund. However, if a fund continuously lags behind its peers in an extended period, it may require a deep investigation. Negative returns are a common part of market cycles, and investors should evaluate long -term performance rather than reacting to short -term losses.

Question: Investors should analyze whether the factors should be analyzed before deciding whether to stop, continue or increase their SIP during a recession?

A: Investors should consider several factors before making a decision. First of all, they should assess their financial goals and investment timelines to determine whether they can take the risk of investing. They should also compare the performance of funds against their benchmarks to evaluate stability. Additionally, understanding your own risk tolerance and life phase can help create informed options. If fundamentals remain strong, investors may also consider increasing their SIP contribution during recession to capitalize on low assessment.

Question: Historically, long -term SIP investors have benefited despite short -term negative returns?

A: Long -term SIP investors have seen historically important recovery stages after the market improvements. In later years, a strong rebellion is often done after the market fall, which benefits patients. The major benefits include the rupee-negative average, which reduces the average purchase price of units and the power of compounding, which increases the creation of long-term wealth. In the last decade, SIP investment has given an average returns of 13.6%, compared to the follower returns of about 11%.

Question: Should investors consider switching funds if their SIP stays in red for an extended period?

A: Investors should avoid switching money in a hurry, as doing so can cause unnecessarily damage. Instead, they should assess the basic principles of funds, relative performance to their peers and its long -term capacity. If the fund underperforms the underperform without persistent recovery signs, a gradual change in a better performing fund may be a prudent strategy.

Question: Can investors take any strategic steps like the top-up SIP during the market improvement for profit in the long run?

A: During market reforms, investors can take several strategic steps to increase their long -term gains. They can increase their SIP contribution through top-up or step-up SIP, making them accumulate higher units at low prices. Additionally, lump sum investment during recession can help capitalize on the recovery of the market. Investors should also consider rebuilding their portfolio to maintain an optimal asset allocation.

Question: How will the minimum SIP amount in mutual funds be reduced in retail investor participation of 250 effects?

A: Reduce the minimum SIP amount to ₹ 250 is an important step towards financial inclusion. This makes mutual funds more accessible to investment, especially for individuals with limited disposable income. This step will help investors to see SIPs as a more acceptable and manageable investment option.

Question: Will this step mainly benefit investors for the first time or encourage existing investors to increase their participation?

A: The new rule will benefit both the first and existing investors. For investors for the first time, low investment limit removes the hesitation of large quantities and encourages them to enter the market. For existing investors, the low SIP amount offers an opportunity to diversify its portfolio by opening additional SIPs in various funds.

Question: What effects do you have on mutual fund penetration in small cities and rural areas?

A: This initiative is expected to increase the mutual fund penetration beyond metropolitan areas. With the availability of online platforms and mobile apps, setting SIP has become easier for investors in remote locations. Additionally, the need for low investment can lead to gradual changes for market -related investments, promoting a comprehensive investment culture.

Question: Do you think this step will promote financial inclusion, or is it more than a psychological elbow to bring hesitation investors?

A: Reducing SIP zodiac acts as a psychological elbow for both financial inclusion measures and hesitation investors. This mutual fund makes investor base wider by making investment more economical. At the same time, it helps to create confidence among new investors, allowing them to slowly start with small contribution before increasing their investment.

Question: How should investors think about starting with OF 250 SIPs in terms of money generation capacity?

A: Starting with ₹ 250 SIP can be a great way to develop a disciplined savings and investment habit. While the initial investment amount may look small, it makes space for future growth as income levels increase. Over time, the power of compounding ensures that slight investment also increases significantly, making it a practical and effective approach to the creation of money.