How to maximise SIP returns in mid- and small-cap funds with the S-T-A-Y strategy
“If you start an SIP and never stop, you don’t have to do much else.” This statement perfectly captures the essence of long-term wealth creation through a systematic investment plan (SIP). The recent fluctuations in mid- and small-cap indices may make investors uneasy, but historical data from multiple market cycles shows that pausing or stopping SIPs during volatile phases often leads to missed opportunities and lower long-term returns.
“Mid- and small-cap stocks are inherently more volatile. Recently, they have declined about 16–17% from their peaks, but this is not unusual—they have historically gone through cyclical phases,” says Chethan Shenoy, Director & Head of Product and Research at Anand Rathi Wealth Limited….
