Testing Time for Markets

In the last few months a common complaint of Indian investors has been that SIPs, the most popular route for them to tap the market, has been underperforming. Returns have been low and the attractiveness of this once popular investment route is gradually and steadily diminishing. The recent volatility in the market coupled with global developments have had a significant impact on the yield of the popular small and mid caps. Against handsome yields of above 70 per cent late last year, returns are subdued. The market has been under pressure due to increase in crude prices and fall in the Indian rupee coupled with interest rate hike by the RBI. There were also fears of a US Fed rate hike and trade wars. This has hit small and mid caps. According to analysts, the Mid Cap Index has been down by 12 per cent while the Small Cap Index has been down by 14 per cent this year. They have been hit...