Clickbait articles of mutual funds being a scam don't do citizens any service: Radhika Gupta

As the conversation surrounding SIPs intensifies, Edelweiss Mutual Funds CEO and MD Radhika Gupta has been at the forefront, advocating for regular investments in mutual funds as a path to long-term financial health.

Radhika Gupta has slammed "clickbait" articles that label mutual funds as scams and discourage people from investing in SIPs (Systematic Investment Plans). The Edelweiss Mutual Funds CEO shared a lengthy note on X detailing how the financial instrument "appeals not just to the investment needs, but the regular savings needs of Indian investors".

"SIPs make money for those who invest in them - check the 10-year returns of a SIP in an equity fund even when markets deliver very average returns - and SIPs allow fund managers to deploy capital gradually," she said. "Yes, it isn't perfect. But it works. And works very well. This accessible savings-cum-growth solution for a critical Indian need deserves to be celebrated not belittled. The clickbait articles of mutual funds being a scam and retail investors being silly do not do our citizens any service."

Gupta added that during interactions with her global counterparts, she came to know that they were impressed that the SIP has been part of creating a retail equity culture so quickly, "something many countries are not able to do". "It is major progress from a day when equity markets were believed to be speculative 'satta'," she said. "Individuals are now aspiring to save and build larger SIP books."

The Edelweiss Mutual Funds head highlighted that crores of investors trust SIPs and use them. "That collective trust is worth 26,000 crores a month. That collective trust is what gives stability to our capital markets during periods of sharp FII outflows," Gupta said.

SIPs have significantly altered the financial landscape in the country and emerged as a popular method for wealth accumulation and financial security. As the conversation surrounding SIPs intensifies, Gupta has been at the forefront, advocating for regular investments in mutual funds as a path to long-term financial health.

Read more: Edelweiss MF's Radhika Gupta feels SIPs should be 'new measure of wealth'. Internet has this to say