‘Invest systematically in mutual funds for the long term to ride out volatility’, is an advice often given by fund managers and advisors. But even as investors pour in over Rs. 7,000 crore in mutual funds through the SIP (systematic investment plan) route every month, the returns across most equity categories have been sub-optimal in recent years.
Consider this: In the large-cap, multi-cap, value-oriented and tax-saving equity categories, 8-9 of every 10 schemes have lagged their respective benchmarks over a three-year period.