1 day ago
WhiteOak CEO Says Investors Should Continue SIPs Amid Market Lull
The stock market has not moved much over the past two years.
Aashish Somaiyaa of WhiteOak Capital AMC says investors should not stop their regular investments, called SIPs, just because of this lull.
Markets do not always rise steadily, and much of their growth can happen in a shorter burst.
He expects a strong period of gains could happen within the next three to four years.
When prices fall, a continuing SIP can buy more investment units for the same regular amount.
This may lower the average price paid over time.
Somaiyaa also says investors can consider funds that spread money across different kinds of assets.
He mentions overseas investing, property and infrastructure investment trusts, and funds that include shares, gold or fixed income.
WhiteOak Capital AMC CEO Aashish Somaiyaa says the market’s muted performance over two years is not a reason to stop SIPs.
He says equity gains are often uneven, with much of a five-year period’s returns potentially arriving in a 12-to-24-month window.
Somaiyaa expects a period of disproportionate market gains within the next three to four years, citing improving corporate performance, tax collections and credit offtake.
He says continuing SIPs through market declines can lower investors’ average purchase cost, while stopping them may undermine their purpose.
He also identifies hybrid and mixed-asset funds, overseas investments, REITs and InvITs as options for diversification.
- Who
- Aashish Somaiyaa, CEO of WhiteOak Capital AMC.
- What
- He advised investors not to stop SIPs because of the recent market lull and discussed other diversification options.
- Where
- India's investment and stock-market context.
- When
- After roughly two years of muted market performance; he expressed an outlook for the next three to four years.
- Why
- He says market returns can be uneven, SIPs can help investors continue buying during price declines, and domestic fundamentals are improving.
Continue SIPs
Pause or use other approaches
Responding to a market lull
Continue SIPs
Somaiyaa says investors should keep SIPs running through flat or falling markets; continuing can help lower their average purchase cost.
Pause or use other approaches
Investors may be tempted to stop SIPs after two years without returns; Somaiyaa cautions that doing so could defeat systematic investing’s purpose.
Choosing an investment approach
Continue SIPs
SIPs are designed to help investors navigate volatile conditions without trying to time the market.
Pause or use other approaches
Somaiyaa says SIPs need not be the only approach: investors can consider hybrid funds, mixed-asset strategies, overseas investing, REITs and InvITs.
Key facts
- Company
- WhiteOak Capital AMC
- Speaker
- Aashish Somaiyaa, CEO
- Recent market period
- Muted performance over the past two years
- Expected outlook
- Somaiyaa expects disproportionate gains during the next three to four years
- Typical return window cited
- He said much of a five-year equity return may come in a 12-to-24-month window
- Factors cited
- Corporate performance, tax collections, credit offtake and valuations after a time correction
- Other options mentioned
- Hybrid and mixed-asset funds, overseas investments, REITs and InvITs
Quotes
Aashish Somaiyaa
CEO of WhiteOak Capital AMC
“Investing outside India, investing in hybrid or mixed asset class funds, investing in alternates like retail and InvITs, which are again listed instruments, but they derive bulk of their income from underlying rental or toll collections.”
CNBC TV 18
“I would be highly confident in the next three to four years there will be one year where you will make disproportionate return because that is always how market has worked.”
CNBC TV 18
Sources
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