Edelweiss Mutual Fund CEO and MD, Radhika Gupta has said that investors should focus on continuity in investment rather than trying to fund the number 1 mutual fund to invest in. Radhika made the comments in an X post, highlighting the findings of a research report by Funds India.
Radhika emphasised the need for continuity versus chasing higher profits in the post.
Radhika Gupta stated that numerous research studies have presented data demonstrating that investing in the top fund is worthless. According to her, websites continue to rank mutual funds by the best discrete returns rather than rolling returns, which assess consistency.
Every mutual fund institution understands that if their scheme ranks first, they will receive massive inflows that will be driven by excessive expectations, she noted.
“It is pointless trying to invest in the #1 fund because #1 changes very fast. Sorting by top returns isn’t an investment strategy. Consistency matters much more. Many research reports have shown data that proves this first line. Again, and again. Thanks, Funds India for doing so too,” Edelweiss Mutual Fund CEO posted on X.
Take a look at Edelweiss Mutual Fund CEO’s post here:
It is pointless trying to invest in the #1 fund because #1 changes very fast. Sorting by top returns isn’t an investment strategy. Consistency matters much more.Many research reports have shown data that proves this first line. Again and again. Thanks @FundsIndia for… https://t.co/1mkGL2lRNy
— Radhika Gupta (@iRadhikaGupta) August 25, 2024
The post was shared on August 25 and since then it has collected over 8,000 views.
Radhika Gupta shared this post after Abhishek Murarka, a founding member at Angel One Wealth, mentioned a FundsIndia report that revealed that the top-ranked mutual fund scheme from 2018 to 2020 is currently ranked 190 in 2021.
Murarka mentioned that the top-ranked scheme for 2021 was ranked 160 in 2018-2020, highlighting how quickly things change.
The top ranked Mutual Fund scheme in 2018-2020 is ranked 190th for 2021-now. The rank 2 is now 192.The top ranked scheme for 2021-now was at 160th ranking in 2018-2020.
You see – things change, you cannot invest looking backwards.
Source: FundsIndia report by @arun_kumar_r
— CA Abhishek Murarka (@abhymurarka) August 24, 2024
Days ago, Radhika Gupta offered her advice to investors who were overwhelmed by the number of index fund options available in the market.
Since I am always talking about dal-chawal funds, if you want to pick one and only one index fund in my view:Large and Midcap 250 Index
Covers the broad Indian economy with reasonable allocation to large and midcaps. https://t.co/1wj2rrWElv
— Radhika Gupta (@iRadhikaGupta) August 19, 2024
The post, which has received enormous traction, was in response to a light-hearted tweet by an investor named Mahesh on X, who made a joke about the vast amount of index fund options.
