Tuesday, August 5, 2025

Creating liberating content

Mumbai: US President Donald Trump’s tariffs threat is casting a

Mumbai: IndusInd Bank has appointed Rajiv Anand as its managing

Top stocks to sell today (AI image) Stock market recommendations:

Related News

The effective US tariff rate on Indian goods jumped to 20.7 per cent in 2025 from just 2.4 per cent in 2024, Fitch Ratings said in its latest assessment. Fitch

Mumbai: US President Donald Trump’s tariffs threat is casting a long shadow over Indian markets, pushing the rupee to a record closing low, and weighing on equities. The domestic currency

Mumbai: IndusInd Bank has appointed Rajiv Anand as its managing director and CEO, effective Aug 25 for a three-year term, following approval from the RBI. The appointment comes at a

Top stocks to sell today (AI image) Stock market recommendations: According to Somil Mehta, Head – Alternate Research, Capital Market Strategy, Mirae Asset Sharekhan, Naukri, and Tata Motors are the

New Delhi: American President Donald Trump’s latest announcement of a possible “substantial increase” in tariffs on Indian goods, added to the uncertainty for exporters, amid indications that govt was looking

New Delhi: PB Balaji, the group CFO of Tata Motors, will take charge as the CEO of British marquee Jaguar Land Rover from Nov this year, becoming the first Indian

Trending News

JSW Cement, the building materials arm of Sajjan Jindal-led JSW Group, has reduced the size of its upcoming initial public offering (IPO) to Rs 3,600 crore and will open the

The agricultural Gross Value Added (GVA) growth is expected to moderate to 4.5% in the first quarter of FY26, down from 5.4% in the preceding quarter, according to a report

Foreign portfolio investors (FPIs) turned net sellers in the Indian equity market in July, pulling out Rs 17,741 crore amid rising global trade tensions. According to data from NSDL, this

Avenue Capital Group-backed Asset Reconstruction Company (India) Ltd (ARCIL) has filed its draft red herring prospectus (DRHP) with markets regulator Sebi on Friday to raise funds through an initial public

Russia-backed Nayara Energy looks at India’s state-run oil companies to offload petrol, diesel exports Nayara Energy has approached Indian state-run oil marketing companies (OMCs) to offload its export volumes of

US President Donald Trump on Saturday claimed that he had “heard” reports of India halting Russian oil imports, hailing it as a “good step”. “I understand that India is no

How not to lose money in small-cap MFs: Do SIPs for at least 12 years

Word Count: 688 | Estimated Reading Time: 4 minutes


How not to lose money in small-cap MFs: Do SIPs for at least 12 years
Three-year SIPs achieved a maximum return of 42.1% annually, whilst experiencing significant depreciation of up to 64.70% in the worst scenarios during this period. (AI image)

Planning to invest in small cap mutual funds? For optimal protection against losses in small-cap mutual funds, investors should maintain Systematic Investment Plans (SIPs) for a minimum duration of 10-12 years, according to a new analysis.
The analysis by Valuemetrics Technologies, examining monthly rolling returns for SIPs between April 2005 and March 2025 in the Nifty Small Cap 250 Total Returns Index, revealed losses in investments spanning three to ten years.
According to an ET report, the study indicated that three-year SIPs achieved a maximum return of 42.1% annually, whilst experiencing significant depreciation of up to 64.70% in the worst scenarios during this period.
The analysis further showed that 10-year SIP investments resulted in a 0.4% annual loss, whereas extending the investment period to 12 years yielded a minimum return of 2.4%.

Small caps are a long-term play

Small caps are a long-term play

“Investors randomly start SIPs in small cap funds, but it is important that they should know that they need to come with longer time horizons if they need to protect capital in this category,” said Chirag Patel, Co-Founder, Valuemetrics Technologies. “As investors extend their investment horizon, the impact of short-term volatility diminishes, increasing the probability of earning higher returns,” he was quoted as saying by the financial daily.
Also Read | Indian stock markets reverse 2025 losses! Bulls party as foreign investors return to D-Street – but is the rally sustainable?
Since September 24, when smaller shares experienced their peak, the Nifty Small Cap 250 has declined by 18.4%. SIP investments in this index have decreased by 13.7%, whilst the Nifty Midcap 150 index SIP value reduced by 7.5%. The Nifty 50 staggered investments showed a modest 1% reduction. This downturn led to a 34% reduction in retail investments in mid-cap and small-cap funds in February compared to January.
The research demonstrated that investors who maintained SIPs in Nifty Small Cap 250 TRI for 12 to 15 years consistently avoided losses.
“A well managed small cap fund can generate higher returns than its large cap counterparts,” said S Shankar, CFP, Credo Capital. “However due to high interim volatility in this space investors must have long time frames typically of 8-10 years.”





Source link

Sign In

Welcome ! Log into Your Account