Indian investors appear to be reducing their participation in Systematic Investment Plans (SIPs) due to market volatility. In January 2025, the SIP stoppage ratio, which compares inactive or terminated SIP accounts to new enrollments, reached 109%. The data indicates a net closure of 5.14 lakh SIPs in the month, surpassing the number of new registrations. Benchmark indices have been fluctuating widely, witnessing significant drops and gains. Both the Nifty and Sensex have considerably decreased from their recent highs.
So, should investors stop their SIPs? Experts emphasize the importance of continuing Systematic Investment Plans (SIPs) for investors. SIPs are considered a crucial component of a disciplined investment strategy and are key to long-term wealth accumulation. Numerous examples have demonstrated how monthly SIPs have the potential to grow into substantial values over time.
Canara Robeco Emerging Equities Fund, a large and mid-cap fund, has grown a Rs 10,000 monthly SIP into Rs 1.77 crore over around 20 years with an XIRR of 17.46%. An initial investment of Rs 1 lakh would have grown to Rs 22.49 lakh with a CAGR of 16.85%. In the last 5 years, this investment would have increased to Rs 11.87 lakh, with a CAGR of 17.92%.
Canara Robeco Emerging Equities Fund Direct-Growth, with assets under management (AUM) worth Rs 23,339 Crores as at 31/12/2024, is a medium-sized fund in its category. The latest Net Asset Value (NAV) of Canara Robeco Emerging Equities Fund Direct-Growth, as of 07/03/2025, stands at ₹256.96. The fund has an expense ratio of 0.6%, in line with the industry average for Large & Midcap funds.
Returns over time
Over the past three months, the fund has shown a lower performance compared to both the benchmark and the category average. The scheme experienced a decrease of 13.99%, while the benchmark had a negative return of 13.08% and the category average had a loss of 14.08%. Since its inception, the scheme has yielded a return of 16.85% , as per data from ACE MF.
However, the scheme has demonstrated superior performance compared to both its benchmark and category average based on trailing returns for the last six months, one year, and ten years. Over the past decade, the scheme has achieved a return of 14.08%, surpassing the benchmark (NIFTY LargeMidcap 250 – TRI) return of 13.70% and the category average return of 12.48%.
In terms of rolling returns, the scheme has achieved a return of approximately 19.16% over the last 10 years based on daily rolling returns. Over the last three and five years, the scheme has provided returns of 19.16% and 15.37%, respectively, based on daily rolling returns.
Based on the 10-year annual returns analysis, the large- and mid-cap fund demonstrated superior performance in 2017 by generating a return of 52.05%, surpassing its competitors.
Asset allocation
As of January 31, 2025, the large- and mid-cap fund allocated 98.30% in equity and 1.70% in other assets. Compared to the large- and mid-cap category, the scheme shows overweight on equity and underweight on other assets and debt. On average, the category had 96.57% in equity, 3.25% in other assets, and 0.18% in debt. In terms of market capitalisation allocation, the fund holds 46.84% in large-cap stocks, 35.32% in mid-cap stocks, 1.70% in other assets, and 16.15% in small-cap stocks.
The majority of the fund’s investments are in sectors such as Financial, Services, Automobile, Capital Goods, and Healthcare. The top 5 holdings of the fund include ICICI Bank Ltd., The Indian Hotels Company Ltd., Bharat Electronics Ltd., Trent Ltd., and UNO Minda Ltd.
