
Veteran fund manager Samir Arora has issued a direct challenge to critics of Systematic Investment Plans (SIPs), arguing that anyone advocating against SIPs must first prove that market timing consistently works. According to reports from LiveMint, Arora posted on X (formerly Twitter) that critics are essentially advocating for market timing when they advise against SIPs. He stated that such commentators should explain why they believe investors can consistently enter and exit markets at the right time to generate superior returns.
Arora has set specific requirements for SIP critics, as reported by LiveMint. He demands that they cite examples of fund managers who have generated returns solely through market timing and recommend books that support such an investment approach. The fund manager added that if there are very few such examples, perhaps critics should first write comprehensive books on the subject before asking investors to abandon SIPs. This challenge comes amid renewed discussions over whether investors should continue monthly investments in equity mutual funds after the strong rally in Indian equities over the past few years.
SIPs have become one of the most popular ways for retail investors to build long-term wealth through mutual funds, according to LiveMint reports. The method involves contributing a fixed amount at regular intervals, such as monthly or quarterly, instead of making a lump-sum investment. One of the biggest advantages of SIPs is rupee cost averaging, where investors buy more units when markets are down and fewer units when prices are high, helping average out the purchase cost over time. For long-term investors, SIPs are generally considered an effective way to participate in equity markets without having to predict the best time to invest. Recent market developments have highlighted the importance of maintaining SIP discipline even during volatile periods, as stopping SIPs during market crashes could result in higher costs than continuing through the downturn.
Samir Arora is the founder and fund manager of Helios Capital Management, an investment firm focused on Indian equities, as reported by LiveMint. He is among India's best-known market veterans and has decades of experience in equity investing across domestic and global markets. Before founding Helios Capital, Arora served as the Chief Investment Officer at Alliance Capital Management in Singapore and has managed several India-focused equity funds. He is widely followed by retail and institutional investors for his views on stock markets, mutual funds, asset allocation and long-term investing.