Edelweiss CEO Radhika Gupta Shares Her Thoughts on Mid-Cap and Small-Cap SIPs

While advising investors to prioritise disciplined and long-term investment strategies, Edelweiss MF CEO Radhika Gupta shared her opinion on the ongoing discussion surrounding mid-cap and small-cap SIPs.

As per a post on X, Gupta reiterated the importance of following a well-balanced, diversified approach, while also staying invested for a minimum period of 10 years and more.

Gupta said, “The SIP was meant to be a simple savings-investment instrument for the common person. A fill it, shut it, forget it one because most people struggle to markets, market caps and SIPs.”

SIP contributions have touched ₹26,000 crore as a large set of investors are following this approach, Gupta highlighted. Moreover, confidence is essential in maintaining stability in the capital markets, especially during persistent FII outflows.

She added, “Everything including mid and small is good in balance. Even an average flexi cap fund has 30% allocation to this category. If you look at the returns of anything from the top of the cycle to the bottom (e.g. 2006 to 2013), they will not look pleasant. Liquidity is very important and can be managed. We have disclosed liquidity numbers in our funds well before regulators asked and maintain this liquidity, without taking cash calls or holding a lot of large cap. The critical thing that no one can disagree about is that the key to making money is to hold on to SIPs for a long time. 10 years.”

She added, “Don't fall for fear mongering or 10 day debates. Focus on finding a good manager and holding for 10 years, in a sensible balanced way.”

Previously, S. Naren, the Chief Investment Officer of Prudential ICICI AMC, stated that valuations of small- and mid-cap segments were excessively high. He also advised investors to leave these segments entirely. Additionally, he opined that Systematic Investment Plans (SIPs) are most effective in volatile and undervalued asset classes.