Liquidity matters, but it can be managed. For example, his funds revealed the liquidity number before making regulators compulsory-without depositing the big-cap or sitting on cash, Gupta said.
The best strategy has been holding sips for 10 years. He said that Gupta’s EW Mid-cap fund (JPM acquired in 2007) has never given a negative 10 years of return. Even at the lowest point, lump sum investors made at least 10%, while SIP investors saw 8% returns.
Gupta’s Techway? Ignore short-term fear-humming. Find a good fund manager, invest wisely, and stick to it for a long race.
The tweet recently followed investment advice by S. Narine, Executive Director of ICICI Prudential Mutual Fund, who gave rise to a debate in the mutual fund industry. Speaking at an event organized by the Mutual Fund distributors’ Chennai-based association, IFA Galaxy, Naren advised investors in view of the existing market volatility in small-cap and mid-cap mutual funds against SIPs.
Naren said that the evaluation of companies in these funds is “absurd” and investors should consider capitalizing their investment soon. “We think it’s time to get out lock, stock and barrel from small and middle-cap,” he said.
According to Naren, while such funds used to have an important part of the risk with banks and large institutions, today it has moved to retail investors.
He said, “All risks are being borne by investors like you. I don’t think either investors or money managers have felt this yet. This is something about which I urge everyone.”
(Tagstotranslate) Midcap (T) Smallcap
