Nearly 51 equity mutual fund SIPs have offered negative returns in the last one year, an analysis by ETMutualFunds showed. These funds lost 10% in the last one year on SIP investments. Around 277 equity mutual funds were there in the mentioned time period.
Samco Flexi Cap Fund lost the most on SIP investments in the last one year of around 9.91%, followed by two funds from Quant Mutual Fund. Quant Multi Cap Fund and Quant Mid Cap Fund gave a negative XIRR of 8.70% and 7.28% respectively on SIP investments.
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Shriram Flexi Cap Fund delivered a negative XIRR of 6.82% on SIP investments in the last one year. Quant Large & Mid Cap Fund delivered a negative XIRR of 6.02% on SIP investments in the last one year, followed by Old Bridge Focused Fund which gave a negative XIRR of 5.96% on SIP investments in the said time period.
Three flexi cap funds - Quant Flexi Cap Fund, NJ Flexi Cap Fund, and JM Flexicap Fund, offered a negative XIRR of 5.79%, 5.39%, and 5.20% respectively on SIP investments in the mentioned time period.
Two value oriented funds - LIC MF Value Fund and Aditya Birla SL Value Fund - lost 5.10% and 4.85% respectively on SIP investments in the last one year. Another value fund - Quant Value Fund - lost 3.87% on SIP investments in the same time horizon.
SBI Midcap Fund gave a negative XIRR of 3.81% on SIP investments in the mentioned time period. Quant Focused Fund offered a negative XIRR of 3.36% in the last one year, followed by two funds from JM Mutual Fund.
JM Focused Fund and JM Large Cap Fund delivered a negative XIRR of 3.31% and 3.20% respectively in the last one year on SIP investments made. Quant ELSS Tax Saver Fund offered a negative XIRR of 1.75% in the similar time frame, followed by Kotak Small Cap Fund which lost 1.63% on SIP investments.
Two small cap funds - Franklin India Small Cap Fund and Quant Small Cap Fund - offered a negative XIRR 1.51% and 1.44% on SIP investments in the last one year. SBI Small Cap Fund, a prominent small cap fund, delivered a negative XIRR of 0.90% in the said time period.
SBI Contra Fund, the oldest and largest contra fund, delivered a negative XIRR of 0.13% on SIP investments in the last one year, followed by Quant Large Cap Fund which lost 0.07% on SIP investments in the said time period.
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With around 51 funds offering negative return on SIP investments one year ago, investors are worried about their SIP investments and are wondering whether they should one pause, redeem, or continue SIPs in funds showing negative 1-year returns, an expert replies that it is too early for an investor to be concerned about their investments and one should continue with their SIPs.
“We believe it is too early for investors to be concerned about negative returns in SIPs as equity investments through SIPs are designed for holding periods of 7-10 years at the least,” Vishal Dhawan, CEO of Plan Ahead Wealth Advisors, a wealth management firm in Mumbai, shared with ETMutualFunds.
“They should continue SIPs as the benefit of lower prices help with rupee cost averaging allowing more units to be purchased with the same rupee value. They do need to track the performance of their schemes over a 3 year period against peers to ensure that the schemes that they are investing in, are doing well vis a vis their peers and category,” he added.
In the last one year, Nifty 50 and BSE Sensex, have gained 2.42% and 2.48% respectively. Nifty Midcap 150 - TRI went up by 2.93% whereas Nifty Smallcap 250 TRI went down by 0.01% and Nifty Smallcap 100 - TRI went down by 0.48% in the mentioned period.
One should always invest based on their risk appetite, investment horizon, and goals.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and Twitter handle.
Samco Flexi Cap Fund lost the most on SIP investments in the last one year of around 9.91%, followed by two funds from Quant Mutual Fund. Quant Multi Cap Fund and Quant Mid Cap Fund gave a negative XIRR of 8.70% and 7.28% respectively on SIP investments.
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Shriram Flexi Cap Fund delivered a negative XIRR of 6.82% on SIP investments in the last one year. Quant Large & Mid Cap Fund delivered a negative XIRR of 6.02% on SIP investments in the last one year, followed by Old Bridge Focused Fund which gave a negative XIRR of 5.96% on SIP investments in the said time period.
Three flexi cap funds - Quant Flexi Cap Fund, NJ Flexi Cap Fund, and JM Flexicap Fund, offered a negative XIRR of 5.79%, 5.39%, and 5.20% respectively on SIP investments in the mentioned time period.
Two value oriented funds - LIC MF Value Fund and Aditya Birla SL Value Fund - lost 5.10% and 4.85% respectively on SIP investments in the last one year. Another value fund - Quant Value Fund - lost 3.87% on SIP investments in the same time horizon.
SBI Midcap Fund gave a negative XIRR of 3.81% on SIP investments in the mentioned time period. Quant Focused Fund offered a negative XIRR of 3.36% in the last one year, followed by two funds from JM Mutual Fund.
JM Focused Fund and JM Large Cap Fund delivered a negative XIRR of 3.31% and 3.20% respectively in the last one year on SIP investments made. Quant ELSS Tax Saver Fund offered a negative XIRR of 1.75% in the similar time frame, followed by Kotak Small Cap Fund which lost 1.63% on SIP investments.
Two small cap funds - Franklin India Small Cap Fund and Quant Small Cap Fund - offered a negative XIRR 1.51% and 1.44% on SIP investments in the last one year. SBI Small Cap Fund, a prominent small cap fund, delivered a negative XIRR of 0.90% in the said time period.
SBI Contra Fund, the oldest and largest contra fund, delivered a negative XIRR of 0.13% on SIP investments in the last one year, followed by Quant Large Cap Fund which lost 0.07% on SIP investments in the said time period.
Also Read | These 11 mutual funds gave over 30% CAGR in 3 years. Do you hold any?
With around 51 funds offering negative return on SIP investments one year ago, investors are worried about their SIP investments and are wondering whether they should one pause, redeem, or continue SIPs in funds showing negative 1-year returns, an expert replies that it is too early for an investor to be concerned about their investments and one should continue with their SIPs.
“We believe it is too early for investors to be concerned about negative returns in SIPs as equity investments through SIPs are designed for holding periods of 7-10 years at the least,” Vishal Dhawan, CEO of Plan Ahead Wealth Advisors, a wealth management firm in Mumbai, shared with ETMutualFunds.
“They should continue SIPs as the benefit of lower prices help with rupee cost averaging allowing more units to be purchased with the same rupee value. They do need to track the performance of their schemes over a 3 year period against peers to ensure that the schemes that they are investing in, are doing well vis a vis their peers and category,” he added.
In the last one year, Nifty 50 and BSE Sensex, have gained 2.42% and 2.48% respectively. Nifty Midcap 150 - TRI went up by 2.93% whereas Nifty Smallcap 250 TRI went down by 0.01% and Nifty Smallcap 100 - TRI went down by 0.48% in the mentioned period.
One should always invest based on their risk appetite, investment horizon, and goals.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and Twitter handle.
