NJ Wealth Report further states that the loss incurred on SIPs is higher in small-cap and mid-cap funds
, and can be accounted at 6%.
Prior to joining the firm, Leeney spent ten years at The Gores Group, where he most recently served as the Head of Global Origination and oversaw business development for all of Gores' investment vehicles, including its small-cap and mid-cap funds
. Prior to Gores, Leeney worked as an investor relations consultant at Taylor Rafferty on a variety of large-cap, cross-border transactions.
Over the five-year period, 28% of large-cap funds, 24% of mid-cap funds
and 30% of small-cap funds in the bottom quartile disappeared.
Data from S&P Indices Versus Active (SPIVA) reports indicates that through June of this year, 81% of domestic large-cap equity funds, 84% of mid-cap funds
and 94% of small-cap funds underperformed their respective benchmarks over the past three years.
Over the past 10 years, 80 percent of all large-cap equity funds and 87 percent of all mid-cap funds
have underperformed the S&P 500 and the S&P MidCap 400 indexes respectively.
Small-and mid-cap funds
are likely to deliver attractive returns, but one must tread with caution
For the average investor, large cap funds are the best investment options as often are less volatile than small to mid-cap funds
Those modifications will also recognize that some market segments--large-cap funds, mid-cap funds
, real estate investment trust funds--have performed exceptionally well in the past year, "and most likely that just can't continue," and the Bar needs to look elsewhere for growth.
Anil Rego, chief executive of Right Horizons, a financial advisory firm, recommends using a Systematic Investment Plan (SIP) to invest in diversified funds, including large and mid-cap funds
, as well as balanced funds to help manage the downside.
In the developed markets, US equity funds were said to have a neutral week with safe-haven flows into large-cap exchange traded funds canceled out by redemptions from small and mid-cap funds
. European equity funds took in, on a net basis, over $2 billion for the third time this year.
They may have taken a beating when the stock markets were in a tumble late last year, but don't write-off small- and mid-cap funds
They didn't open a bond fund but invested in several mutual funds, including large-cap, technology, international, and mid-cap funds