Barun Kr. Das, The Bengal News, Kolkata, 23rd January 2026 : For most individual investors, mutual funds remain a compelling pathway to equity exposure in India – especially if approached with a long-term mindset:
Rupee Cost Averaging Works in Tough Markets
Systematic Investment Plans (SIPs) help in reducing average purchase costs over time, which can be particularly effective when markets are choppy.
While short-term downturns can test nerves, historically equity mutual funds have delivered superior returns vs. traditional fixed-income or savings instruments if held over 5-7 years or more. This makes them suitable for goals like retirement, children’s education, or wealth creation. However, investors should be mindful of their risk tolerance, investment horizon, and fund expense ratios.
Bottom Line
The Sensex and broader markets are currently under pressure amid global headwinds and capital outflows, keeping the near-term outlook cautious. That said, domestic fundamentals and policy support offer a reason for measured optimism going forward. Within this backdrop, mutual funds – especially diversified equity funds via disciplined SIPs – continue to be a prudent option for long-term investors, helping smooth out volatility and harness India’s growth story.
Diversification Across Stocks and Sectors
Equity mutual funds automatically spread risk across a basket of companies, reducing the impact of volatility in any single stock. This helps investors stay invested through market cycles.
Professional Management
Fund managers adjust portfolio weightings based on macro conditions and company fundamentals – a useful advantage during uncertain phases.
