Investors may be tempted to worry when their mutual fund SIPs fail to generate returns for an extended period. However, Prashant Jain, Founder of 3P Investment Managers, said at The ET Alpha Wealth Summit 2.0 that investors should not be concerned about weak SIP returns as long as the Indian economy and companies continue to grow.
Speaking at the summit, Jain said stock markets can go through periods of weak or no returns even as the economy continues to expand. Citing the experience of the past five decades, he noted that markets have failed to deliver returns in roughly one out of every three years, despite continued economic growth.
