The Power of Long-Term SIPs in Small Caps

Today’s Daily Byte

It’s been another down day for the markets. If you recall, on Friday night, we saw the US markets cool off, and that impact spread to Asia this morning, which also affected the Indian market. The problem is that we’ve come off significantly from the top, while the US market was very strong. Now, the US market is perhaps going through some profit-taking, and that sentiment is hitting us again on the downside.

Today, we will discuss a common practice done by many retail investors, which I’ll debunk in terms of why you shouldn’t waste your time on it. We’ll release that discussion in the second half of the video, so please wait for it. Now, let’s dive into the market data.

Reading Time : 7 Minutes

The Power of Long-Term SIPs in Small Caps

A very insightful table shared by B Padmanabhan on X highlights how small-cap funds have performed over different market cycles. The analysis starts from February 2019, leading up to the COVID crash, then the strong post-pandemic rally, and now the recent dip in 2025.. . . . .

Reading Time : 4 Minutes

The magnitude of FII selling is not alarming !

Till February 18th, despite significant selling by FIIs, their overall equity portfolio has only declined by 3%. As per the latest data, their current holdings stand at $7.82 lakh million, down from a peak of $9.30 lakh million in September. However, when compared to last year’s figure of $7.46 lakh million, it’s clear that their overall position has not deteriorated significantly. This suggests that even with heavy selling, the rising stock prices have offset the impact. . . . . .

Reading Time : 3 Minutes