Monday, 30 December 2024
Monday, 30 December 2024
The year is ending soon and as investors review their portfolios many are noticing something unsettling. Several equity mutual funds have reported negative returns on SIP investments in 2024. Some even have negative XIRR of 20.28 per cent. That means for someone investing ₹10,000 monthly since January, the value today would be a disappointing ₹90,763.
Mutual fund evangelists would tell you that markets keep going up and down and that the dips are as important as the peaks in helping investments grow over a period of time, but for now reactions on social media tell a tale of their own, ranging from outrage to humour to deep introspection.
‘Mutual fund sahi hai? Sounds like a joke’
One user declared mutual funds the “biggest scam of this country,” dragging government policies and politicians into the mix. “Mutual Fund Sahi Hai is the biggest scam of this country & @BJP4India government led by @narendramodi @nsitharaman @AmitShah are fully involved in this strategy. Explain in simple languages, out of 1 lakh investors how many actually made good profit after 5/6/10 years of investments”.
The math isn’t mutual when it comes to trust and returns.
‘What if mutual funds are a scam?’
Another user shuddered at the thought of the public discovering mutual funds are a scam. “What will happen if people of India find that Mutual Fund is a scam? My god it should never happen..” stated the user.
Scary thought.
‘Slow and steady wins...nothing?’
“Why Mutual Fund is not increasing as per growth of market and Loose faster than market.
Is their any scam” asked another frustrated X user, tagging markets regulator Sebi for good measure..
For now, suspicions are growing faster than SIPs.
All fall down: small, mid, and large caps alike
A more straightforward take points out that mutual funds, whether small-cap, mid-cap, or large-cap, have underwhelmed across the board this year.
“Mutual funds have been down for the most part this year small cap as well as large and mid cap, have no substantial return” says the post.
US sneeze, India catches a cold
“Noise makes the market go up or down,” wrote another wise X user. “US markets sneeze, and we crumble.”
Atmanirbhar Bharat markets are a way away.
Index Funds, Anyone?
“Let’s all move to index funds and shut down these finfluencers,” read a post advocating for a simpler approach. “Of course, after reading and not just listening to podcasts.” the post added
Statutory warning: All trends have downsides.
Mutual Funds have ‘personalities’ too
One witty post compared mutual funds to humans. “#MutualFunds have personalities of their own Some mutual funds fall less when the market is down but don't outperform during bull run phase, eg. PPFAS MF Some outperform both sides, fall harder during market falls and rise higher than the market during bull run,” said the post
The big negative returns club?
“If I have the right data, all mutual funds gave negative returns in the last three months,” wrote another user.
Not much to laugh about here, just a reality check.
From aggressive buyers to long-term philosophers
“Aggressive buy-the-dips people have turned into patient long-term investors,” lamented one user. “Portfolios are down by 50% …. People will come at par in 6-8 months.” added the post
“After 100 years, we’ll all be Warren Buffett,” said the post.
We will not repeat the “in the long run” joke.
