New Delhi [India], October 26 (ANI): The mid-cap segment could be a strong investment choice for investors adopting the long-term Systematic Investment Plan (SIP) route, according to WhiteOak Capital Asset Management Company (AMC). The firm highlighted that mid-cap stocks often present opportunities for potentially higher growth over an extended horizon.
In its recent report titled ‘SIP Analysis Report’, WhiteOak Capital AMC noted that while large-cap stocks are generally less volatile and offer portfolio stability, mid-caps can deliver superior returns when held over a longer investment period.
“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 stated.
The report further emphasized that although equities are inherently volatile, the level of volatility tends to decline as the investment horizon lengthens. “Equities have proved to be a volatile asset class in the past, but the study reveals that volatility reduces as investors increase their investment horizon,” it observed.
WhiteOak’s analysis also indicated that over the long term, SIP frequency — whether daily, weekly, or monthly — has minimal impact on returns. “Historical data analysis suggests that all three frequencies end up generating somewhat similar returns,” the note said.
The mutual fund house advised investors to stay focused on long-term financial goals and avoid frequently altering their investment approach, as frequent shifts can be stressful and counterproductive. “SIP is a better strategy than frequently changing lanes,” the firm added.
Systematic Investment Plans (SIPs) are one of the most popular methods of investing in mutual funds, allowing investors to build wealth steadily by investing a fixed amount at regular intervals, similar to a recurring deposit. (ANI)
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