Staying invested and patient pays off for 'Dumber' investors against timing market: Radhika Gupta

After Monday’s sharp market rally, Edelweiss Mutual Fund CEO Radhika Gupta emphasised just how tough it is to time the stock market.

The Indian equities surged by over 3.7% on Monday, posting their strongest session in nearly a year and recouping last week's losses, as easing border tensions with Pakistan, renewed optimism over U.S.- China trade talks, and a supportive domestic macro backdrop fuelled broad-based buying across sectors.

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The market capitalisation of all listed companies on the BSE increased by Rs 15.46 lakh crore to Rs 432.47 lakh crore on May 12. The rally followed a weekend ceasefire agreement between India and Pakistan, bringing a pause to the worst cross-border clashes in nearly three decades.

According to a report by ET, “Risk appetite was further supported by encouraging global cues, positive mutual fund inflows, and an upgrade to India’s sovereign credit rating.”

Against this backdrop, Gupta posted on social media platform X (formerly known as Twitter) that the smartest strategy is to stay invested and stay patient, as a large part of a year's returns come from a few critical days, and those are hard to predict.



“A large part of a year's returns come from a few critical days, and those are hard to predict. For us "dumber" investors, staying invested and staying patient is the easier and more effective thing to do!,” said Gupta.

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The CEO also posted that for individuals and fund managers also it is difficult to time the market at entry, exit and re-entry.
She posted, “While there are proponents of taking cash calls, days like this remind you how difficult market timing - both entry, exit and re-entry - for individuals and fund managers are.”

That’s why, for many of us “dumber” investors, the smartest strategy and more effective thing to do is often the simplest: Stay invested and staying patient, she added.