Amid continuous market volatility, Edelweiss Mutual Fund MD and CEO Radhika Gupta urged investors to stay calm and stick to their investments. She reassured investors that surviving tough market phases is key to long-term success.
“Dear Investor, sometimes the best way to get through hell, is well, just to get through. If it feels like hell right now, remember it did in 2008 also. And 2020. And we all survived, as we always do. Bad times don’t last. Good investors do,” Gupta said in a post on X.
In a tweet earlier this week, she stressed the importance of consistency in SIPs, especially during downturns. “SIPping is a marathon, and time makes a big difference. Enduring during tough days and months and collecting those units cheap makes a big difference to your returns. The chances of zero returns decrease dramatically with time. Skipping those crucial fall installments hurts,” she added.
Her advice comes as equity markets continue to decline. The BSE Sensex fell 199.76 points to close at 75,939.21 on Friday after briefly plunging 699 points during the day. The NSE Nifty dropped 102.15 points to settle at 22,929.25. Over the last eight trading days, the Sensex and Nifty have tumbled 3.36% and 3.41%, respectively, amid persistent foreign fund outflows and weaker-than-expected corporate earnings.
ICICI Prudential AMC’s veteran fund manager S Naren recently cautioned investors about mid-cap and small-cap investments, describing 2025 as potentially “the most dangerous since the 2008-2010 period.” He highlighted that retail investors now shoulder significant risks, unlike earlier crises when large institutions bore the brunt.
Addressing concerns over mid- and small-cap investments, Gupta tweeted, “The SIP was meant to be a simple savings-investment instrument for the common person—a fill it, shut it, forget it one. Most people struggle to track markets, market caps, and SIPs.”
She said everything including mid and small is good in balance. Even an average flexi cap fund has 30% allocation to this category,” she added, advocating for diversification.
Highlighting the cyclical nature of returns, Gupta explained that short-term performance may appear discouraging at times. “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,” she noted.
On liquidity management, she reassured investors that Edelweiss has maintained a proactive approach. “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.”
According to Gupta, the most critical aspect of generating wealth through SIPs is time. “The key to making money is to hold on to SIPs for a long time. Ten years. More,” she said, underscoring the need for endurance and a long-term horizon.
She pointed to the performance of the Edelweiss Midcap Fund, launched in 2007, to illustrate her point. “Here are the rolling 10-year lumpsum returns: the minimum return is 10%, and the minimum SIP return is 8%. Nothing can convince me these are bad numbers. No negative returns in 10 years.”
Gupta warned investors not to fall for “fear mongering or 10-day debates” and advised them to focus on “finding a good manager and holding for 10 years, in a sensible, balanced way.”
