Persist with your SIPs to accumulate fund units at reduced costs

Pain in equities is expected to continue in the short-term, but investors with longer horizon must stay the course

Diversified equity funds have struggled to deliver satisfactory category average returns over the past 12 months. Large-cap funds have yielded a meagre return of 0.6 per cent, mid-cap funds have generated 1.9 per cent, while small-cap funds have fared slightly better with a return of 3.4 per cent.

Perfect storm

This challenging market environment is due to a ‘perfect storm’ of various problems arising in quick succession. “First, there was the Russia-Ukraine war. Then the interest-rate environment shifted drastically from very low to very high rates. There have been growth-related concerns in several major economies. And recently there has been the banking