Stories
Stay Invested Through Flat Markets Says PGIM India CEO
- •PGIM India Mutual Fund CEO Abhishek Tiwari advises investors not to abandon systematic investment plans after two years of flat market returns.
- •Analysis shows investors who stay through sideways markets historically earn strong returns exceeding 20% over the following two years.
- •SIP inflows continue to reach record highs despite muted market returns, demonstrating strong investor discipline.
- •Tiwari warns against chasing recent top-performing funds, noting that historical data shows most fail to maintain their rankings over time.
Key Questions Answered
According to PGIM India Mutual Fund CEO Abhishek Tiwari, historical analysis shows that investors who stay put through a prolonged flat market for two years or more generate an average return north of 20% over a subsequent two-year holding period, an outcome that occurred 93% of the time.
Chasing recent winners is risky because performance-chasing behavior usually happens after the best part of the performance uptick has already passed, with historical data showing that nine out of the top 10 performing funds in 2014 failed to maintain their rankings two years later.
Monthly SIP contributions reached a record ₹32,297 crore alongside 66 consecutive months of net equity inflows, even though the Nifty 500 TRI delivered only around 0.3% returns over the same two-year period.
