Equity investors should stay invested despite volatility: Union AMC’s CEO

The chief executive officer of Union Asset Management Company, G Pradeepkumar, a mutual fund industry veteran, urged investors in equity to stay invested as market volatility is inevitable, and it is impossible to time the market.

Under his leadership, Union AMC, has seen assets more than double from ₹3,574 crore in 2009 to ₹8,254 crore in March 2020.

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“In volatile markets, SIP (Systematic Investment Plan) and STP (Systematic Transfer Plan) make a lot of sense as far as spreading one’s investment and reducing risk is concerned. Timing the market is extremely difficult,” he said.

For Pradeepkumar, it is interesting to note that while the broader market, as represented by Nifty50, has been slightly negative over the past one year, SIPs in many of the actively managed equity funds have given respectable returns.

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G Pradeepkumar’s advice for young investors in their early 30s is to invest 100 per cent in equity. “In a country like India, where the future prospects look so bright, there is no need to be there in any other asset class. Equity markets should be able to offer the best possible returns,” he said.

The mutual fund veteran advises investors to keep it simple, not invest in anything they do not understand.

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