Radhika Gupta Slams Clickbait Articles On Mutual Funds Being A Scam; Here's What She Said

"It is major progress from a day when equity markets were believed to be speculative 'satta'. Individuals are now aspiring to save and build larger SIP books,” Gupta wrote

Gupta shared that in discussions with her global counterparts, she learned that they were impressed by how quickly the SIP has contributed to fostering a retail equity culture

Source : X

Radhika Gupta, CEO of Edelweiss Mutual Funds has criticised "clickbait" articles that label mutual funds as scams and discourage people from investing in SIPs (Systematic Investment Plans). The CEO posted an in-depth note on X (formerly Twitter), explaining how mutual funds cater not only to investment needs but also to the regular savings requirements 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. 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,” she said.

The mutual fund industry created an instrument that appeals not just to the investment needs, but the regular savings needs of Indian investors. We spend time educating investors and money marketing this solution.

Today, crores of investors - common investors - use it and trust…

— Radhika Gupta (@iRadhikaGupta) January 27, 2025

Gupta shared that in discussions with her global counterparts, she learned that they were impressed by how quickly the SIP has contributed to fostering a retail equity culture, something many countries struggle to achieve. "It is major progress from a day when equity markets were believed to be speculative 'satta'. Individuals are now aspiring to save and build larger SIP books,” she wrote.

She further stressed that millions of investors rely on SIPs. "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 explained.

SIPs have transformed the financial landscape in the country, becoming a popular avenue for wealth accumulation and financial security. As discussions around SIPs gain momentum, Gupta has been a leading voice, championing regular mutual fund investments as a key strategy for long-term financial well-being.