Hold on to equity funds in 2023 despite turbulence, say experts

If you exit the market now, you could be left on the sidelines when a sustained recovery begins

After two years of blockbuster returns in 2020 and 2021, most equity mutual fund categories have given single-digit or negative returns in 2022. Their lacklustre performance may continue for some time in 2023 as well.

Indian equity funds, however, were spared the carnage seen globally. “Global challenges like higher inflation and interest rates, higher energy costs due to the Russia-Ukraine war, and growth concerns across US, Europe and China impacted equity sentiment. Global investors reduced equity allocations leading to a sharp correction across key markets globally. The Indian market, however, displayed remarkable resilience and was among the year’s better-performing ones,”