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Many individuals, who have started investing in mutual funds after the demonetisation exercise of Modi government, are disheartened by the single-digit SIP returns offered by equity mutual fund schemes. Mutual fund advisors blame the market correction since beginning of this year for the poor returns.“Investors expect to generate double-digit returns from equity schemes. Moreover, these novice investors who got in after the currency ban had much higher expectations,” says Sridevi Ganesh, CFP, Chamomile Investment Consultants. Smallcap schemes were the worst hit with an average category CAGR returns of 2.5 per cent for an SIP which started in December 2016, a month after the note ban. Few schemes in the category are giving negative returns as well. For example, DSP BR Small Cap Fund with CAGR returns of -7.3 per cent, Sundaram Small Cap Fund (-6.4 per cent), ICICI Pru Samllcap Fund (-4.5 per cent), HSBC Small Cap Fund (-0.1 per cent), and Union Small Cap Fund (0.76 per cent) during the same period. Midcap category was the second, with an average CAGR SIP-return of 3.50 per cent. Two schemes are in the red as well. SBI Magnum Midcap Fund gave -6.02 per cent and BNP Paribas Mid Cap Fund gave -2.7 per cent.Multicap category on an average generated 6.9 per cent CAGR returns and largecap category posted 7.9 per cent. The two categories returned better than the other equity categories, but no one invest in equity schemes for a single-digit return, say advisors.Demonetisation prompted many individuals to question the wisdom of keeping liquid cash. Many traditional bank depositors also started looking towards mutual funds, after banks started cutting deposit rates. As individuals deposited large amount of cash with banks, many banks started cutting deposit rates.“We saw huge inflows in mutual funds after demonetisation as the investors had no better choice to invest their money. The markets were doing well at the time and it continued to be on the higher side till last year end. However, the returns turned negative for many equity schemes after market correction which began in January this year,” says Ankita Tanna Narsey, Founder, Oaktree Financial Advisors.Inflows in equity mutual fund schemes rose by whooping 57 per cent to Rs 6.56 lakh crore since 30 November, 2016.Mutual fund advisors ask post-DeMon mutual fund investors to stay focused on their goals and continue with their investments. They point out the advantage of continuing with SIP investment, as it will help investors amass more units. Also, investing regularly over a long period would help investors to generate higher returns in the long term.“One or two years is a very short time to evaluate SIP returns. Five to seven years is a good time to look at your SIP returns. You should continue with your SIPs during all the market cycles. It is only then the SIP will show its magic”, says Ganesh.“It's only when you buy at lower price you will see returns when the prices go up. Instead of thinking about returns in shorter period, investors should check if their fund has been a consistent performer. And, if it is, you should continue your SIP,” says Narsey.