'Why should I continue to invest in equity?'

Between March and April, many equity categories have registered a drop in net flows. And even though the market has recovered, some investors lost money by selling while others are complaining that their long-term SIPs have turned negative. We asked these five fund managers to share why they think investors must keep investing in equity Pankaj Tibrewal, - Equity Fund Management, Kotak Mahindra AMC "In the short term, when the markets are performing well, SIP returns will be impressive. When the markets are performing poorly, SIP returns tend to be negative. We can say that in the short term, SIP returns are largely driven by market sentiments. But in the long term, it is the fundamentals that will succeed and reward the disciplined investors. If you see 10-year SIP returns, for the month of March and April, they have remained in the positive domain, despite market turbulence. "If there is no financial exigency, one must continue with their SIPs right now to take advantage of lower market valuations and get the benefit of rupee cost averaging. To create wealth in the long term, now is the time to take advantage of this situation. It is extremely important that investors follow a disciplined asset allocation and stay in equity for the long term based on their risk appetite and financial goals." Neelesh Surana, CIO, Mirae Asset Mutual Fund "Past returns during periods of extr

This article was originally published on July 22, 2020.