Expect mid-teen return, higher volatility in 2018: Fund managers

Mutual fund sector should continue to see rapid pace of growth in inflow and rise in SIP accounts

The Rs 23-lakh crore mutual fund (MF) sector seems likely to continue with high trajectory growth in 2018. However, investors are also being cautioned by fund managers to reduce their expectation on returns to about the mid-teens, against the 30-plus per cent the year 2017 offered.

According to some top fund managers, the market in 2018 would be more volatile. The possibility of knee-jerk reactions is present. The caution comes on the back of macroeconomic challenges, both domestic and global, which could upset the market during the course of next year.

Sunil Singhania, global head of equities at Reliance Capital, says: "2018