New Delhi [India], October 26 : The mid-cap segment can be a good investment option for investors seeking to invest via the long-term SIP route, according to WhiteOak Capital AMC, which asserted that mid-cap segments may offer many opportunities for potential higher growth.
Investment management and advisory services firm WhiteOak Capital AMC released a note on SIP titled 'SIP Analysis Report' earlier this week.
According to the note, an average Large Cap stock is generally less volatile than an average Small and Midcap stock and provides stability to the portfolio.
"The study reveals that, among the three market cap segments, the midcap segment is a good investment option for investors seeking to invest via the long-term SIP route," the note read.
Experts often suggest investing for the "Long-term," but what exactly is "Long-term" it said on what is an ideal investment time horizon for SIP.
"Equities have proved to be a volatile asset class in the past. But, the study reveals volatility reduces as investors increase their investment horizon," it supplemented, without categorically long-term investment.
According to the note, historical data analysis suggests that, in the long term, it hardly matters if the investor invests via Daily, Weekly, or Monthly SIP Frequency.
"All three frequencies end up generating somewhat similar returns," it noted.
As per the WhiteOak Capital Mutual Fund report, SIP is a better strategy than frequently changing lanes, as frequent changes can be stressful and harmful.
"Therefore, investors should focus on reaching the ultimate financial goals by continuing SIP over the long term, it concluded.
As defined, Systematic Investment Plans (SIPs) are among the most popular ways to invest in Mutual Funds. With SIPs, you can start small and gradually build a corpus systematically and in a planned manner. Similar to a Recurring Deposit, a SIP investment involves allocating a predetermined amount of money for market investment at regular intervals (usually every month).
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