Brace yourself for another turbulent year ahead in equities and MFs

Global liquidity tightening and the mid-year general elections point to difficult times, nonetheless do not stop your investments

The year that has gone by has delivered a double whammy to mutual fund investors. Returns from equity funds were disappointing (see table). Even debt funds offered only limited comfort due to a volatile interest rate environment. The IL&FS crisis pitchforked credit risk to the forefront. The coming year may also be a turbulent one, owing to global liquidity tightening and the general elections. Investors need to keep the faith and keep their investments going even if the scenario turns bleak.  

Disappointing year for equity investors: The bull run of prior years had driven equity valuations to exorbitant levels. According