Business
Are you questioning ‘mutual fund sahi hai’ after 10% portfolio loss? Expert explains bigger picture
A query from Lari, a government teacher from Madhya Pradesh and a viewer of The Money Show on ET Now, reflects this sentiment. She says her mutual fund portfolio is down nearly 10% and she is struggling to see any benefit so far while investing in mutual funds.
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According to financial expert Harshvardhan Roongta, this is a very common concern, particularly among new investors. Those who have entered the market in the last one or two years may even see negative returns in their SIP investments, leading to doubts about whether they made the right choice. Naturally, many begin comparing mutual funds with fixed deposits, wondering if a steady 6% return would have been a better option.
“So, you might question yourself thinking whether you have done the right thing because the common comparison that investors would have if after two years or three years they see their portfolio negative the first thing that comes to their mind is that it would be better if I put my money in fixed deposit, at least I would have got 6% per annum. So, these are the things that usually investors are definitely confused with,” the expert said.
However, this comparison often overlooks a key aspect—mutual funds, especially equity funds, are market-linked instruments. Their performance is directly influenced by broader economic conditions, global events, and investor sentiment. When there is uncertainty—be it geopolitical tensions, economic stress, or global disruptions—markets tend to fall, and mutual fund returns reflect that reality.
“Markets will fall when there is uncertainty and they will go up when there is clarity,” the expert further highlighted.
Roongta explains that this behaviour is not a flaw but a feature of how markets function. In fact, it would be more concerning if markets continued to rise despite significant global stress, as that would indicate a disconnect from underlying realities. Market corrections are a natural response to uncertainty, and they help bring valuations in line with fundamentals.
The expert said that, “The question is what actually would be a cause of concern would be that there is war that is going on right now as it is and there is so much of stress on fuel, energy; there is so much of concerns about security and the war escalating, etc, and markets ignored all this and continuously just kept going one way upwards, that would be a cause of concern because it is not doing what it is supposed to do.”
Over time, as clarity returns and economic conditions improve, markets tend to recover. However, this recovery is not immediate. Even if external risks such as geopolitical tensions ease, the real driver of sustained market growth—corporate earnings—takes time to improve. As companies report better performance and the economy stabilises, returns gradually follow.
Also Read | Sebi simplifies gifting of mutual funds. Here’s what it means for investors
This highlights an important lesson for investors: equity investing requires patience and a long-term perspective. Short-term volatility is inevitable, and expecting consistent positive returns over one- or two-year periods can lead to disappointment.
At the same time, not every investor may be comfortable with this level of uncertainty. Roongta emphasises that before investing in mutual funds, especially equity schemes, it is essential to understand how they work, what kind of returns to expect, and the risks involved in the short term. Investors who are uncomfortable with market fluctuations may be better suited to more stable options like fixed deposits or other low-risk instruments.
Ultimately, the decision comes down to alignment. If an investor understands the nature of market-linked investments and is willing to stay invested through cycles, mutual funds can be an effective wealth creation tool. But if volatility causes stress and uncertainty, it may be worth reconsidering the investment approach to ensure both financial and emotional comfort.
In volatile times, the real question is not whether mutual funds are “right” or “wrong”—but whether they are the right fit for your expectations and investment temperament.
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It’s a tough time for any young person looking for a job at the moment. While overall unemployment is running at just over 5 percent, there’s particular concern about a large group of 16 to 24 year olds – almost a million of them (12.8%) who are not in employment, education or training. And that includes recent graduates in that age bracket. They’re known as NEETS. David Aaronovitch and guests discuss why they’re in this situation – is it down to the state of the economy, their own ability to work or that ever present fear – AI?
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Business
FIIs sell Indian equities worth Rs 1.14 lakh crore in March; 2026 outflow balloons to Rs 1.27 lakh crore
This has turned out to be the worst month so far, as foreign investors continue pulling out from their Indian investments amid the Iran-Israel war.
Commenting on the current trends, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments said the weakness in global equity markets following the war in West Asia, the steady depreciation of the rupee, fears of decline in remittances from the Gulf region and concerns surrounding the impact of high crude price on India’s growth and corporate earnings contributed to the sustained selling by FPIs.
“It is important to understand that FPIs were sellers in other emerging markets, too, like Taiwan and South Korea. There is a risk-off trend in equity markets, globally after the war broke out in West Asia. The poor returns from India vis-a-vis other markets – both developed and emerging- during the last eighteen months is the principal reason for FPI’s indifference towards India. If their sustained selling strategy is to change, there should be an end to the hostilities in West Asia and decline in crude prices,” Vijayakumar said.
On Friday, FIIs sold domestic shares at Rs 4,367.30 crore while DIIs were net buyers at Rs 3,566.15 crore.
Indian frontline indices ended their two-session rally amid sharp cuts as a failure in the Iran-US negotiations dented the market mood. Elevated energy prices and a plunging rupee aggravated troubles for domestic investors. Amid high volatility, markets were mainly dragged by financials, auto and consumer stocks. Nifty settled at 22,819.60, falling by 486.85 points or 2.09% while the BSE Sensex closed at 73,583.22, declining 1,690.23 points or 2.25%.
FIIs in 2026
Foreign investors turned net buyers in February, buying shares worth Rs 22,615 crore in the domestic markets so far. In January, they sold Rs 35,962 crore worth of shares.
In 2025, the FIIs buying trends remained patchy, but the overall trend was bearish. They took Rs 1,66,286 crore from Indian markets as trade deal delay and premium valuations weighed on the sentiments.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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The CME Comex is the exchange where futures are traded for gold, silver, and other commodities. The CME also allows futures buyers to turn their contracts into physical metal through delivery. You can find more detail on the CME
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