Radhika Gupta, the CEO of Edelweiss Mutual Fund, has important advice for investors during this shaky time in the market. She says, “Don’t just go along with what others say—make smart choices!” If you’re looking for safe options, consider hybrid or debt mutual funds instead of riskier stocks.
Lately, many people have stopped their regular investments called SIPs because they’re worried about the market. Some think that switching to index funds is safer, but Gupta wants to clear up this misunderstanding. She explains that moving from a small-cap mutual fund to a small-cap index fund doesn’t lower your risk. Both types invest in small companies, which can be very volatile.
Gupta pointed out that the main difference is that actively managed funds have managers who can make them perform better—or worse—than the index. “Index funds are not less risky; they carry the same risks as active funds for small-cap investments,” she said.
Earlier, Gupta reminded everyone that tough times don’t last forever, but smart investors do! Just like in previous crises, we can weather the storm by staying committed to our investment plan. She believes that investing is a long-term journey and encourages everyone to keep going with their SIPs, so they can see their money grow over time.
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