The reason you must hold on to equity funds despite turbulence in 2023

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

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

Investors may, however, draw solace from the fact that equity funds in India were spared the carnage witnessed 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 sharp correction across key markets globally. The Indian market, however,