SIPping is a marathon and time makes a big difference: Radhika Gupta (original) (raw)

Synopsis

Radhika Gupta, CEO of Edelweiss Mutual Fund, shares insights on the power of SIPs (Systematic Investment Plans), emphasizing consistency over speed. She highlights that enduring tough market periods and staying invested long-term can yield significant returns. Gupta compares SIPs to a marathon, stressing the importance of persistency, and encourages investors to stay goal-focused and avoid impulsive decisions.

SIPping is a marathon and time makes a big difference: Radhika GuptaETMarkets.com

With all the ongoing discussions about whether to stop, start, time, or play the dip with something as simple as an SIP, Radhika Gupta, CEO of Edelweiss Mutual Fund, shares some interesting data that may help investors decide on their next course of action.

She posted on social media, "Since we are all trying to decipher whether to stop, start, time, or play the dip with something as simple as an SIP, here’s some interesting data that may help."

Since we are all trying to decipher whether to stop, start, time or play the dip, on something as simple as a SIP, some interesting data that may help. From team @EdelweissMF

— Radhika Gupta (@iRadhikaGupta) February 11, 2025

According to the post by the CEO, SIPping is a marathon, and time makes a big difference. Gupta shares an image that emphasizes it's not the speed (high returns) in a marathon (investing) that matters, but the persistence that matters more for a fruitful result. Let your SIP compound and never give up midway through your investing journey.

“Enduring through tough days and months, and collecting those units at a cheaper price, makes a big difference to your returns,” the CEO shares. Along with the post, Radhika Gupta shared an image that reads: investors who stayed invested when the market fell sharply eventually gained when the markets bounced back.

When one focuses on staying longer on the SIP pitch, the chances of experiencing negative returns are much lower. Investors who stayed invested for 10 years in a SIP match have never experienced negative returns, the social media post stated.

“The chances of zero returns decrease dramatically with time. (This is large-cap data, midcap later),” Gupta posted.

Comparing SIP to chess, Gupta explained that in a game of chess, every right move builds towards victory. Similarly, each SIP installment counts and brings you closer to your goals, especially when the market is down and you earn more units. Making impulsive moves like pausing SIP or trying to time SIP installments can lead to unfavorable outcomes.

“Skipping those crucial fall installments hurts. Think about stopping a SIP now,” the CEO posted on social media.

One should remain goal-focused, and the time to get conservative is when one is near their goal, as most SIPs are done with a purpose or goal in the first place. Because one buys units at a low, SIP investments often recover more quickly, Gupta mentions.

“Hope this helps cut out some of the noise. And for those who want to troll me for defending MFs and SIPs, I am doing my job, proudly and happily, and will continue to do so. Happy SIPping,” Radhika Gupta posted.

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