Midcap SIP Dilemma: Stay Invested or Pause Amid Market Volatility?

As Indian markets face a sustained downturn, investors are questioning their small and midcap fund strategies. ICICI Prudential CIO S Naren advises caution, suggesting it's time to exit these segments due to overvaluation. However, other experts recommend staying invested for long-term horizons. The Nifty Smallcap 250 and Midcap 150 indices have declined 11.68% and 9.19% respectively over six months. Investors are advised to reassess their risk appetite and consider large-cap or flexi-cap schemes. For those facing financial constraints, most fund houses offer SIP pause facilities, allowing temporary halts without cancellation.

 

Sources: Moneycontrol, Economic Times, Business Standard