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Fund delivering as promised, but investor still unhappy? Edelweiss MF's Radhika Gupta explains the return-chasing trap
Mint 52 min ago·8 Sept 2026, 5:50 pm
Edelweiss Mutual Fund CEO Radhika Gupta warns that investors often focus too much on a fund's past performance. While poor returns are a concern, the real danger lies in the emotional reaction when a competitor fund starts delivering higher returns. This behavior, known as chasing returns, can lead investors to switch funds frequently in an attempt to beat the market.
This constant shifting is detrimental because it disrupts the compounding effect of long-term investing. By moving money into funds that have recently performed well, investors are essentially buying high and selling low. This cycle often results in lower overall wealth accumulation compared to sticking with a consistent strategy. The key takeaway is that past performance is not a guarantee of future results, and emotional decisions can be more costly than market volatility.
Excerpt from Mint
Investors often believe poor returns are the biggest threat to their wealth. But what if the bigger risk comes from how they react when another fund starts to do better? A closer look at a common investing behaviour may make you rethink the chase for returns. Investors often begin their mutual fund journey with a…Read the original at Mint
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