Equity investors should stay invested despite volatility: Union AMC CEO
Managing Director of Union Asset Management Company, G Pradeepkumar, a mutual fund industry veteran, urged equity investors to stay invested as market volatility is inevitable and timing the market is impossible.
Under his leadership, Union AMC, saw its assets more than double from ₹3,574 crore in 2009 to ₹8,254 crore in March 2020.
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“In volatile markets, SIP (Systematic Investment Plan) and STP (Systematic Transfer Plan) make a lot of sense in terms of spreading your investment and reducing risk. It is extremely difficult to time the market,” he said.
For Pradeepkumar, it’s interesting to note that while the broader market, represented by Nifty50, has been slightly negative over the past year, the SIPs of many actively managed equity funds have delivered respectable returns.
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G Pradeepkumar’s advice to young investors in their early thirties is to invest 100% in stocks. “In a country like India, where the prospects for the future look so bright, there is no need to be in any other asset class. Stock markets should be able to offer the best returns possible,” he said.
The mutual fund veteran advises investors to keep it simple and not invest in something they don’t understand.
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