Choose the Strategy You Can Stick With

Ratin Biswass / 26 Jun 2025/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, MF - Editorial, Mutual Fund

Choose the Strategy You Can Stick With

Multi-cap investing, with its inherent flexibility to allocate across large

In today’s market landscape, filled with noise, shifting narratives, and ever-changing performance charts, it’s tempting to chase what seems to be the ‘best’ fund of the moment. Yet, seasoned investors—whether investing lump sums or through SIPs—understand that long-term success is less about timing the perfect entry and more about choosing a strategy that allows you to stay invested through every market cycle.[EasyDNNnews:PaidContentStart]

Multi-cap investing, with its inherent flexibility to allocate across large, mid, and Small-Cap stocks, offers a strong foundation for long-term wealth creation. But the real advantage lies in aligning the investment strategy with your individual temperament and involvement level. For instance, if you're a hands-on, analytical investor comfortable navigating market trends and tax implications, building your own multicap portfolio can be highly rewarding. Historical data suggests that such self-managed portfolios have consistently outperformed both actively managed Multi-Cap Funds and broader indices on metrics like returns, Sharpe ratio, and upside capture. However, this approach demands discipline, regular monitoring, and a keen understanding of the new capital gains tax structure—best suited for investors who enjoy being in control.

On the other hand, if you prefer a structured and less stressful approach, actively managed Multi-Cap Funds through SIPs may be your ideal path. These funds offer built-in diversification, internal rebalancing, and professional fund management—all of which help smooth out volatility while maintaining a growth-oriented trajectory. They are particularly suitable for investors who value emotional comfort and consistency over granular decision-making.

Before finalising your equity allocation or setting up a new SIP, take a moment to reflect: Which investment approach aligns not just with your goals, but with your ability to remain committed through ups and downs? Remember lasting wealth grows from clarity of purpose—not convoluted strategies.

Shashikant Singh
Executive Editor

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